Dongfeng Motor Shares Rise Amid Merger Talks with Changan Automobile

Shares of Dongfeng Motor (HK:0489) rose on Wednesday following a New York Times report that the Chinese state-owned automaker is in advanced talks to merge with Changan Automobile (SZ:000625). The deal, if finalized, would mark a major step in China's push to consolidate its auto industry and accelerate the shift toward electric vehicles (EVs).

Citing sources familiar with the matter, the report stated that the two automakers are in advanced merger discussions, aiming to address industry overcapacity and strengthen their position in the EV market. Together, Dongfeng and Changan produce around five million vehicles annually, making the potential merger one of the largest in China's automotive sector.

The companies have reportedly informed foreign partners such as Ford, Nissan (OTC:NSANY), and Honda (NYSE:HMC) about the ongoing discussions. While Dongfeng has not yet released an official statement, investor confidence in the merger boosted its stock price during Hong Kong trading.

Dongfeng Motor shares rose as much as 2.8% to HK$4.74, and were trading 0.8% higher at HK$4.65 as of 03:59 GMT. In contrast, Changan Automobile’s Shenzhen-listed shares dipped 0.7%.

The merger talks come amid Beijing’s efforts to streamline the auto sector and accelerate EV adoption. As part of broader industry gains, Geely Automobile (HK:0175) jumped 3.5%, while NIO Inc (HK:9866) gained 0.8%, and Xpeng Inc (HK:9868) rose 0.7%.

The potential Dongfeng-Changan merger could reshape China’s automotive landscape, signaling a stronger push toward sustainable mobility and greater efficiency through consolidation.