Chinese state-owned automakers Dongfeng Motor Group and Chongqing Changan Automobile are reportedly considering a merger as part of restructuring plans aimed at enhancing their competitiveness in the new energy vehicle (NEV) market. The potential merger has caused Dongfeng's shares to surge by approximately 85.8% in Hong Kong, reflecting investor optimism about the consolidation. If the merger proceeds, it would create a dominant player in China's automotive industry, potentially surpassing current market leader BYD Co. The move is seen as a strategic response to increasing competition in the rapidly evolving EV sector.