What Is Shenlong Motors Up To?

History is often strikingly similar. In 2020, Dongfeng Peugeot-Citroën Automobile (DPCA) saw its annual sales plummet to a low of 50,300 vehicles. The then-general manager Chen Bin's rallying cry of having "no retreat and rebirth from desperation" became the spiritual pillar that supported the people of DPCA through their darkest times.

Five years from today, a similar situation occurs again. From January to October 2025, Shenlong Automobile's sales were only 42,400 units, a year-on-year decrease of 24.9%. At this critical moment, the return of veteran Lu Haitao has initiated a new round of self-redemption for Shenlong Automobile.

In fact, the predicament of Shenlong Motors has been a long decline lasting nearly a decade. Since 2016, this once mainstream joint venture car company has gradually faded from the market's central view. In the difficult times of 2020, Shenlong Motors embarked on a do-or-die battle.

The "Yuan+" plan has fully upgraded its strategic actions, and the "Five-Heart Protection Action" focuses on addressing service pain points. These measures quickly showed results, with Dongfeng Peugeot-Citroën Automobile's sales starting to rebound month by month from September 2020, achieving the first year-on-year growth in 30 months by December.

Over a longer period, while Shenlong Motors has been experiencing a difficult recovery in recent years, the Chinese automotive industry is undergoing tremendous changes. In just the past October, the monthly sales of new energy vehicles exceeded 50% of the total car sales for the first time. Meanwhile, from January to October 2025, China's car exports reached 5.616 million units, including 2.014 million new energy vehicles exported.

In this context, Shenlong Auto's "rebirth from death" is no longer just a battle for the company's own survival, but also a reflection of the transformation of traditional joint venture car manufacturers. Now, with the new leadership team taking office and profound changes in the Chinese car market, Shenlong Auto is once again standing at the crossroads of a new round of transformation.

Make the most of existing resources.

October 28th is a date worth remembering. On this day, Dongfeng Peugeot Citroën Automobile Company, which has not had any new updates or major news for a long time, held a leadership meeting and announced a key personnel appointment: Lu Haitao has been appointed as the General Manager of Dongfeng Peugeot Citroën Automobile Company.

The return of this veteran carries the deep expectations of Dongfeng Motor for the future of Shenlong. Lu Haitao is not a new face at Shenlong; he began his career in 1992 when he joined Shenlong Automobile and has held key positions such as General Manager of the Dongfeng Peugeot brand department and Vice General Manager of Shenlong Company. During his tenure, Shenlong Automobile achieved a peak annual sales performance of 700,000 units.

Subsequently, his experience in holding key positions in the Strategic Planning Department of Dongfeng Motor has endowed him with a higher industry perspective and holistic thinking. From a hindsight perspective, this may very well be the leadership quality that Dongfeng Motor needed most during its critical transformation period. It is particularly noteworthy that Lu Haitao's return retains his role as Deputy Minister of the Group's Strategic Planning Department.

Many people say that this arrangement is by no means accidental. In the face of challenges to the traditional joint venture model, this move not only ensures a high degree of coordination between the Dongfeng strategy and the group's top-level design but also preserves smooth communication channels with the Stellantis group. It reflects Dongfeng Motor's intention to fundamentally address the constraints on the development of joint ventures.

Analysts believe that when a company faces major business transformation, market upheaval, or operational crisis, it requires someone with great authority and strategic vision to turn the tide.

Since this appointment, Dongfeng Peugeot Citroën Automobile has embarked on a rapid growth path, with the new team demonstrating exceptional operational efficiency. In just ten days, Dongfeng Peugeot Citroën Automobile launched a series of intensive actions with a more open approach, showcasing a clear breakthrough strategy.

Like many other enterprises under state-owned enterprises, one of them is the deepening of government relations. On October 30, Lü Haitao and his team held talks with Liu Ziqing, member of the Standing Committee of Wuhan Municipal Committee and Secretary of the Wuhan Economic and Technological Development Zone Party Working Committee. On November 5, he traveled to Chengdu to meet with Qiu Xiangdong, Secretary of the Chengdu Economic and Technological Development Zone Party Working Committee.

The relevant high-level talks held in the locations of these two major production bases have sent a strong signal that Shenlong Automobile is seeking local policy support and aims to integrate into regional economic development.

Another aspect is the expansion of industrial cooperation. On November 6th, Shenlong Automobile conducted business exchanges with T3 Mobility and Dongfeng Changxing. During the exchange, Lv Haitao clearly pointed out: "As a leading platform in the smart mobility field, T3 Mobility's large user base, mature operational system, and keen market insight form the core foundation for deepening cooperation between the two parties."

These collaborations are not isolated business discussions, but rather initiatives by Shenlong Automobile to proactively layout diversified application scenarios for future new energy products. As Lu Haitao emphasized, Shenlong Automobile will continue to create new energy products that are "good-looking, fun to drive, and enjoyable," working with partners to explore new patterns in the mobility market.

While engaging in intensive external collaborations, Dongfeng Peugeot-Citroën Automobile Company Ltd. (DPCA) is also undergoing deep internal adjustments. On October 31st, DPCA issued a statement saying that it will continue to closely collaborate with Yipai Technology, mutually supporting each other to tackle challenges and seize opportunities, fully committing to achieving the goals of their cooperation. This news might be traced back to the previous launch of the new energy brand Shijie, and also lays the groundwork for upcoming new car models.

On November 3, Liu Yanhong, Deputy Secretary of the Party Committee and Chairperson of the Trade Union of Dongfeng Motor Corporation, attended the oath-taking rally of Dongfeng Peugeot Citroën Automobile Company titled "Promise to Deliver, Unite and Strive, Work Hard for 60 Days." This internal mobilization meeting conveyed Dongfeng Peugeot Citroën's urgent sense of crisis and firm determination. However, what should truly invigorate the people at Dongfeng Peugeot Citroën is Liu Yanhong's statement: Dongfeng Motor Corporation will always be a strong backing for Dongfeng Peugeot Citroën and will wholeheartedly support the company.

Lv Haitao emphasized at the meeting that all cadres and employees must adhere to the principle of "keeping promises." He stressed that this reflects "a respect for goals, and the rigid implementation of all targets set by the group; it is a commitment to all parties, allowing shareholders, partners, and all cadres and employees to see the vigorous vitality of the company."

Behind this series of measures is the extremely severe sales reality faced by Dongfeng Peugeot-Citroën Automobile Company Ltd. At such a critical moment of life and death, the new management team's intensive schedule and clear breakthrough strategy are aimed at resolving the current survival crisis while also planning for long-term transformational development. It can be said that they have utilized all available resources to the fullest extent.

Maintain a clear business mindset.

If the previous internal collaborations, government-enterprise connections, and enterprise alliances were the branch lines of Shenlong Automobile, then Shenlong Automobile is also clearly aware of where its main battleground lies. This is a common issue that joint venture car companies are currently facing: how to move towards a broader consumer market, or in other words, how to empower global regions based on the Chinese market.

At this point, Shenlong Automobile has quickly provided a solution. One of them is to continuously strengthen the internal service system construction, attempting to reshape the relationship between the brand and users through service upgrades.

On November 1st, on the occasion of the fifth anniversary of the "Five Heart Guardian Action," Shenlong Automobile officially launched the "Lifetime Engine Warranty" policy. Initially, this policy had an age limit for vehicles, but after its release, Shenlong Automobile actively listened to market feedback and user opinions. In response to the expectations of numerous car owners, especially longtime owners, for broader service coverage, the company announced an enhancement to the policy on November 10th.

The upgrade cancels the age limit of the car, meaning that loyal users of all French brands can enjoy this thoughtful guarantee. From the perspective of service marketing, this measure becomes a strategic action for Dongfeng Peugeot Citroën Automobile Company to maintain its base users and strengthen brand loyalty.

Shenlong Motors has profoundly elaborated on this in an official statement: "It marks the transition of Shenlong Motors' services from providing basic 'peace of mind' to creating a sincere 'heart-to-heart' experience, and is committed to earning users' lasting 'confidence'."

During the awkward period when the halo of joint venture brands is gradually fading and the breakthrough in electrification transformation has yet to be achieved, service has become an important link for Dongfeng Peugeot-Citroën Automobile to maintain connection with its 6.3 million base users. This service philosophy, which ranges from being worry-free to heartfelt, has built a differentiated barrier for Dongfeng Peugeot-Citroën Automobile in the fierce market competition.

At the same time as consolidating the domestic market foundation, Dongfeng Peugeot Citroën Automobile Company Ltd. (DPCA) is actively exploring global markets to find new growth opportunities. On November 7th, Olivier Bourges, Executive Vice President of Stellantis Group and Head of China and Asia Pacific, along with his delegation, visited the Wuhan municipal government and conducted a study of DPCA.

The significance of this visit goes beyond a regular business meeting; it marks a clear statement from both shareholders regarding the future development strategy of Dongfeng Peugeot-Citroën Automobile Company Ltd. During the talks, Olivier emphasized, "The Stellantis Group has always highly valued strategic cooperation with Chinese partners and is engaging in deep interaction with Dongfeng Group."

More importantly, he clearly stated that looking towards the future, Stellantis Group will strongly support Dongfeng Peugeot-Citroën Automobile's strategy of "In China For Global" development, leveraging the group's advantage as an international export hub in Wuhan to ensure that the products manufactured by Dongfeng Peugeot-Citroën in China not only meet local market demands but are also sold to global markets. This statement undoubtedly injects a strong impetus into Dongfeng Peugeot-Citroën's transformational development.

The "China for the World" strategy is not a new concept for Dongfeng Motor's Shenlong Automobile. Looking back to 2023, in the context of reaching a new strategic consensus between the shareholders of Dongfeng Motor and Stellantis Group, it was clearly defined as the strategic direction of "Shenlong Manufacturing for Global Sales."

In 2021, the Versailles C5 X was manufactured exclusively in Chengdu and exported globally, making it the first model exported by the Stellantis Group from China. This arrangement was seen as a concrete manifestation of the substantial support plan set by both shareholders of Shenlong for its revival.

From the critical standpoint of the present moment, Shenlong Automobile's "In China, For the World" strategy is not just a development option but a necessity for survival. If in the past, the company focused on exporting gasoline vehicles like the Versailles C5 X and 408X produced domestically, the current choice is to focus on the new energy product segment of Shenlong Automobile.

In March 2025, Shenlong Motors announced the launch of a new independent new energy vehicle brand called "HEDMOS Shijie". In May, the Shijie 06 was officially released and listed with an official guide price of 125,800 RMB, and a special price of 108,800 RMB for French car enthusiasts. The Shijie brand is seen as the starting point of Shenlong Motors' second venture and a crucial step for Dongfeng Group in its transition to new energy.

Dongfeng Motor, a leader in China's intelligent pure electric technology, empowers classic French driving control, opening up a new path of "reverse joint venture" in the new energy era. The market performance of future new models from Shijie New Energy will also directly impact the implementation of the "In China, For the World" strategy.

At a new historical starting point, Shenlong Motors is embracing this era filled with challenges and opportunities with the courage of "reviving from the brink of death." Since Lü Haitao took the position of general manager and formed a new team, Shenlong Motors has demonstrated its action and fighting power in just half a month, showing the determination of this 33-year-old Sino-French joint venture car company not to succumb to decline and to strive vigorously.