China’s state-owned Dongfeng Motor Corp unveiled a sweeping restructuring plan on Friday, announcing it will privatize its Hong Kong listed unit while spinning off its electric vehicle brand, Voyah, for a separate listing.
The move values Dongfeng Motor Group (0489.HK) at around HK$55.13 billion (US$7.06 billion). Shareholders will be offered HK$6.68 per share, a premium of nearly 12% over the stock’s last closing price on August 8, before trading was suspended.
As part of the restructuring, Dongfeng will float Voyah on the stock market likely also in Hong Kong aiming to elevate the premium EV brand’s visibility and attract fresh investment. Dongfeng currently holds nearly 80% of Voyah, which it launched in 2020 to compete with domestic rivals such as BYD and Nio.
The overhaul underscores Dongfeng’s accelerating shift away from its legacy internal-combustion engine business. Earlier this month, the company put up for sale its 50% stake in Dongfeng Honda Engine Co., a joint venture with Honda that reported a net loss of 227.8 million yuan (US$31 million) in 2024.
Industry analysts say the restructuring reflects the pressure on traditional automakers as China’s car market becomes increasingly dominated by new energy vehicles (NEVs). By streamlining its operations and separating its EV arm, Dongfeng is betting it can sharpen its competitiveness in the intensifying price war that has reshaped the sector.
