Deep Blue, Is It Revived?

According to official data, in May 2026, Deep Blue Auto global sales were 33,243 units, up 30% year-over-year, stabilizing in the "monthly sales 30,000+" club for 3 consecutive months. Cumulative sales from Jan-May reached 130,531 units, up 15% year-over-year, with cumulative global deliveries exceeding 850,000 units.

Just a few months ago, Deep Blue was shrouded in the gloom of declining sales and profit losses, even questioned on whether it could survive in a market with intensifying competition. From being pessimized to achieving consecutive monthly sales over 30,000, what allowed Deep Blue to achieve this turnaround?

The "30,000 Club" on the Brink

Just a few months ago, Deep Blue was a typical sample surrounded by pessimistic voices.

In Q1 2026, Deep Blue sales dropped over 17% year-over-year. Deliveries for the first two months continued to face pressure; January delivery volume fell month-over-month, and February didn't even directly release the sales volume for all series.

Horizontal comparison looks even more awkward — Li Auto, NIO, and AITO maintained positive growth during the same period. Even Changan's sibling brand Qiyuan within the Changan system reported 18,300 units in February, a 96.3% month-over-month surge. Deep Blue's "lagging behind" stood out remarkably.

More tricky than sales is the profit dilemma. In 2025, Deep Blue Auto's full-year loss was 899 million yuan; cumulative losses over the past four years exceeded 8 billion yuan. Avatr's net loss was about 2.95 billion yuan during the same period, with cumulative losses from H1 2022 to 2025 exceeding 11.3 billion yuan.

These two "major cash burners" dragged down parent company Changan Automobile, presenting "revenue grew but profits didn't" — revenue increased slightly year-over-year in 2025, but net attributable profit dropped 44.34% year-over-year; in Q1 2026, net profit plummeted 74.09% year-over-year.

More worrying is brand internal friction. Deep Blue and Qiyuan form direct competition in the 110,000 to 150,000 yuan price range. Both share the Changan EPA technology platform. Qiyuan A06 and Deep Blue L06 launched only 8 days apart, but Qiyuan A06's starting price was nearly 30,000 yuan lower.

Image Source: Deep Blue

Changan's plan was to achieve full market coverage through differentiated positioning. Qiyuan targets family users, cutting in with high cost-performance 800V fast charging; Deep Blue targets young consumers, emphasizing sporty design and personalized elements like frameless doors. But the market reaction was not buying in: in consumers' eyes, the "two types of noodles" with different seasonings added to the same pot are hard to treat as different cuisines.

Changan Chairman Zhu Huarong's metaphor — "Pea noodles and meat sauce noodles don't repel each other" — appeared idealistic in front of cruel sales data. When the industry price war had already pulled the automotive sector's profit margin down to 3.2%, any resource misallocation or internal fighting by a sub-brand could become the last straw that breaks the camel's back. Deep Blue stands on such a brink.

What Drives the Turnaround Against the Odds

The turning point appeared in March 2026. Deep Blue quickly reversed the situation with 31,742 units, a 87.8% surge month-over-month. For the following two months, it continuously held the 30,000+ threshold. This counterattack was mainly driven by three variables.

The core variable is Deep Blue S05. This compact SUV found a precise balance point between price and configuration. 620 km CLTC range, 3C supercharging standard on all series, paired with CATL cells, while achieving near mid-size SUV seating space with a 2,880 mm long wheelbase. The pure electric version also features a 159 L class-leading frunk.

Image Source: Deep Blue

In the core battlefield of 100,000 to 150,000 yuan where fierce competition occurs, the S05 attracted young users with its high-looks design with frameless doors. In April, global sales reached 17,269 units, up 96.1% year-over-year. Since launch, monthly average sales exceeded 10,000, cumulative sales exceeded 200,000 units.

For an industry that "loses money on every car sold", a volume-selling product truly paid for by the market means at least gradually narrowing losses. Deep Blue reduced losses by over 50% year-over-year in 2025; S05's scaled contribution was undoubtedly a key factor.

Intelligence is the second card Deep Blue holds. On June 13, 2026, the new Deep Blue S07 Extended Range Edition launched, starting at 159,900 yuan. It is equipped with Huawei Qiankun Intelligent Driving ADS Pro, for the first time downscaling advanced intelligent driving to this price segment.

This system covers all scenarios NOA in urban areas and highways, equipped with a 27-sensor perception scheme. Fuel consumption at low battery is as low as 3.8 L per 100 km, CLTC pure electric range reaches up to 300 km.

Deep Blue's choice is very clear: in a market where intelligent assisted driving is a real variable in car purchase decisions, directly use the trust endorsement of the Huawei brand to penetrate user minds. Relying on versions equipped with Huawei LiDAR to continue being popular, Deep Blue S07's cumulative sales have exceeded 300,000 units since launch.

Image Source: Deep Blue

The third path is a dual breakthrough in channels and going global. In April, Deep Blue reached a strategic cooperation with JD. Deep Blue L06 Extended Range Edition became the "National Good Car 2.0" exclusively sold on JD. Users on JD.com App can complete viewing cars, booking, ordering, and payment processes with one click, enjoying 120-minute in-home in-depth test drive services. Leveraging JD's hundreds of millions of user traffic and mature e-commerce system, quickly broaden brand reach and reduce customer acquisition costs.

Deep Blue L06 Extended Range Edition pure electric range is 245 km, comprehensive range 1505 km. After exclusive sales on JD, volume rose rapidly. In April, monthly orders broke 10,000 units, actual sales were 5,189 units, stabilizing above 5,000 units for two consecutive months.

Overseas markets provide greater imagination space. From Jan-May, Deep Blue's cumulative overseas sales reached 28,704 units, up 167% year-over-year. Core model Deep Blue S05 is priced at €38,990 to €44,990 in Europe. It entered 66 countries and regions including Europe and Southeast Asia. Right-hand drive versions have started production at Thailand's Rayong factory and have been introduced to Pakistan as the first locally assembled extended-range electric SUV. In multiple overseas markets, Deep Blue's sales rank steadily at the front, becoming the brand's long-term growth driver.

Compared to the anxiety situation at the beginning of the year, Deep Blue has now taken firm root in the "30,000+" club. However, the real test has just begun — how to get out of the dilemma of "selling more but losing less but still losing", how to find their own positioning in the integration with Avatr within the Changan system, all need to be answered in the next growth stage. Speaking with products and responding to doubts with sales, Deep Blue has only taken the first step.