Chinese automaker Changan Auto has established a new unit, the AD Collaborative Development Department, that will merge the internal operations of its Avatr and Deepal brands, according to infohub.kz.
The unit's name is formed from the first letters of the two marques. It will handle shared processes for the brands, while Avatr will additionally set up joint centers for design, product development and platform technologies.
The brands will share resources in development, manufacturing, procurement and administrative work, but will remain independent. Sales, image and positioning for Avatr and Deepal will stay separate.
Changan expects to cut costs by 20–30%. The company promises that the rights and interests of vehicle owners will not change.
The decision comes amid differing momentum for the two brands. Avatr, which occupies the higher-priced electric vehicle segment, delivered 27,600 vehicles in the first half of 2026 – down 51.3% from a year earlier.
Deepal, by contrast, sold 164,200 vehicles worldwide in the same period, up 14.6%. Overseas shipments rose 141% to 35,800 units.
The consolidation of internal processes is taking place as Avatr prepares for an IPO in Hong Kong. The company refiled its prospectus in June 2026, so the structural change could draw additional regulatory scrutiny.
By 2030, Changan aims to raise combined annual sales of Avatr and Deepal to more than 1.5 million vehicles.
Earlier, Kursiv Auto reported that Deepal and Avatr would officially arrive in Kazakhstan in autumn 2026.