(Yicai) Sept. 28 -- Changan Automobile's luxury brand Avatr and mid-to-high-end new energy vehicle brand Deepal have begun integrating some operations as the Chinese carmaker seeks to build them into a brand group with annual global sales exceeding 1.5 million vehicles, Yicai has learned exclusively.

The new AD Synergistic Development Department, whose name combines the initials of Avatr and Deepal, will have several secondary departments, including those responsible for planning and cooperation, marketing and products, as well as shared centers for human resources and finance and a general affairs department, according to information obtained by Yicai.

Changan has also proposed that Avatr establish several shared or collaborative centers for styling design, product development, and platform technology to handle related operations entrusted to it by Deepal. Deepal, meanwhile, will dissolve several business units and their subordinate organizations.

Yicai contacted Avatr to confirm the establishment of the AD Synergistic Development Department but had not received a response by the time of publication.

The move follows Chongqing-based Changan's announcement in April that Avatr and Deepal would pursue comprehensive strategic collaboration, with the aim of building a mid-to-high-end brand group with annual global sales exceeding 1.5 million units and overseas sales accounting for more than 40 percent.

Changan Chairman Zhu Huarong said at a media briefing in April that the strategy and independent operation of the two brands would remain unchanged, while they would share system capabilities and resources, including technology and supply chains.

Avatr was established in July 2018. Changan is its largest shareholder with a nearly 41 percent stake, while Huawei Technologies works closely with the automaker by providing intelligent driving and cockpit technologies. Avatr sold 120,000 vehicles last year.

Avatr submitted an application to list on the Hong Kong Stock Exchange in November last year and filed a new application in June after its earlier prospectus expired. Asked whether the strategic restructuring with Deepal would affect Avatr's initial public offering, Avatr Technology President Chen Zhuo said the restructuring would not affect the company's plan to list in Hong Kong.

Deepal, formerly known as Changan New Energy Vehicles Technology, was established in May 2018 and launched the Deepal brand in April 2022. Its global sales rose 37 percent to 333,000 vehicles last year, with overseas markets accounting for about 10 percent.

Editor: Emmi Laine