Dongfeng Motor Corporation and Changan Automobile, two state-owned Chinese automakers, have announced restructuring plans involving other central state-owned enterprises.

The companies emphasized that these efforts aim to optimize operations without significantly disrupting daily activities.

Dongfeng Motor Corporation revealed that its parent company, Dongfeng Motor Group Co. Ltd., is in discussions about restructuring. The restructuring is in its early stages and requires approval from authorities.

In a similar move, Changan Automobile said its indirect controlling shareholder Norinco Group is exploring restructuring opportunities with other SOEs.

Both companies have faced challenges in sales over recent years. Changan set a sales target of 2.8 million vehicles for 2024 and achieved 2.68 million units. Sales of NEVs rose by 54.97%, totaling 734,600 units.

Dongfeng also missed its 2024 target of 3.2 million vehicles, selling only 1.89 million units, representing a 9.2% year-on-year decline.