A worker assembles a Peugeot 3008 compact sport-utility vehicle (SUV) on the production line at a plant operated by Dongfeng Peugeot-Citroen Automobile Ltd., the joint venture between Dongfeng Motor Corp. and PSA Peugeot Citroen, in Wuhan, China.
Tomohiro Ohsumi | Bloomberg | Getty Images
Shares in China’s Dongfeng Motor Group skyrocketed to hit their highest level since 2017 as they resumed trading Monday, after the company’s parent announced on Friday plans to take the automaker private.
Dongfeng Motor Group’s Hong Kong-listed stock surged 69%, before paring gains to trade at over 57% higher, with Reuters reporting the take-private deal values the company at about $7 billion.
The Wuhan-based company is also preparing to spin off and list its electric-vehicle unit, VOYAH, in Hong Kong.
Trading in the company’s shares was halted between Aug. 11 and Aug. 22 as Dongfeng had flagged a possible key announcement.
The take-private decision follows a March statement from China’s State Council, which indicated potential restructuring of three major state-owned carmakers, including Dongfeng Motor, as part of efforts to consolidate the sector and enhance competitiveness.
The company, which also released its earnings on Friday, reported revenue for the first half of the year rose 6.6% from a year earlier to 54.53 billion yuan (about $7.5 billion).
In its earnings report, Dongfeng noted that the “severe and complex landscape” facing the automotive industry was “unlikely to improve significantly.”
“Domestic demand is expected to gradually slow, while the overseas market faces new uncertainties,” it said in its business outlook segment, adding that market segmentation will intensify.
Dongfeng Motor, which partners with Japan’s Nissan and Honda, said it delivered 823,900 vehicles in the first half of 2025, down nearly 15% from a year ago.
Still, sales of pure electric and plug-in hybrid models climbed 33% to 204,400 units, making up roughly a quarter of total deliveries. The VOYAH series saw sales soaring 84.8% year on year, the company said in its filing.
Last week, Dongfeng Motor Group reportedly put its 50% stake in Dongfeng Honda Engine Company for sale. The company’s shares rose almost 150% year-to-date, LSEG data showed.
Dongfeng Motor Corporation, parent of Dongfeng Motor Group, was founded in 1969 and is one of China’s oldest auto companies.
