Gasgoo Munich-Deepal’s global sales climbed to 33,243 units in May 2026. This represents a 30% year-on-year jump, keeping the automaker firmly in the "30,000-plus" club for a third straight month. From January through May, deliveries totaled 130,531. This is up 15% from a year earlier, pushing its global cumulative tally past 850,000 vehicles.Just months ago, the brand was overshadowed by slumping sales and widening losses. Skeptics questioned whether it could survive in a market defined by cutthroat competition. Yet, Deepal has staged a turnaround, consistently breaching the 30,000-unit mark. What exactly fueled this reversal of fortune?The "30,000 Club" on the EdgeUntil recently, Deepal was the textbook example of a brand written off by the market.In the first quarter of 2026, Deepal’s sales tumbled more than 17% year-on-year. Delivery pressure mounted in the first two months. January volumes slipped from December, and the company didn’t even release full-system sales figures for February.The contrast with peers was stark. While Li Auto, NIO, and AITO all posted growth, Changan’s sibling brand Qiyuan delivered 18,300 units in February. This was a 96.3% monthly surge. Deepal’s lag was conspicuous.More troubling than the sales slump was the profitability crisis. Deepal lost 899 million yuan in 2025. It has accumulated over 8 billion yuan in losses over the past four years. Meanwhile, Avatr posted a net loss of about 2.95 billion yuan in the same period. Cumulative deficits exceeded 11.3 billion yuan from 2022 through the first half of 2025.These two "money pits" dragged parent company Changan Automobile into a dilemma of rising revenue but falling profits. While 2025 revenue edged up slightly, net profit attributable to shareholders slumped 44.34%. The first quarter of 2026 was even worse. Profit plummeted 74.09%.Internal friction added to the worries. Deepal and Qiyuan went head-to-head in the 110,000 to 150,000 yuan price bracket. Both are built on Changan’s EPA platform. The Qiyuan A06 and Deepal L06 launched just eight days apart — yet the A06’s starting price was nearly 30,000 yuan lower.Image Source: DeepalChangan’s strategy was market coverage through differentiation. Qiyuan targeted families with affordable 800V fast-charging. Deepal courted younger buyers with sporty designs and frameless doors. The market, however, wasn’t convinced. To consumers, these were just "two types of noodles from the same pot with different seasonings" — hardly distinct cuisines.Changan Chairman Zhu Huairong’s metaphor — "pea noodles and sauce noodles don't conflict" — seemed idealistic against the harsh sales data. The industry price war drove profit margins down to just 3.2%. Any resource misallocation or internal strife among sub-brands could be the straw that breaks the camel's back. Deepal was standing right on that precipice.How the Turnaround HappenedThe turning point arrived in March 2026. Deepal sold 31,742 units. This was an 87.8% monthly surge, quickly reversing its fortunes. It has since held the 30,000-plus line for two consecutive months. This counteroffensive was driven by three key variables.The most critical factor was the Deepal S05. This compact SUV struck a precise balance between price and configuration. It offers 620 km CLTC range and standard 3C supercharging across the lineup. It uses CATL battery cells and delivers near-mid-size SUV interior space with a 2,880 mm wheelbase. The pure electric version boasts a class-leading 159-liter frunk.Image Source: DeepalIn the fiercely contested 100,000 to 150,000 yuan battlefield, the S05 attracted younger buyers with its frameless doors and sleek design. Global sales hit 17,269 units in April. This represents a 96.1% annual jump. Since launch, monthly sales have consistently topped 10,000. Cumulative volume has passed 200,000.In an industry where "selling one means losing one," a true volume hit signals at least gradually narrowing losses. Deepal cut its losses by more than 50% in 2025. The scale contributed by the S05 was undoubtedly a key factor.Intelligence was Deepal’s second card. On June 13, 2026, the revamped Deepal S07 extended-range version launched. It starts at 159,900 yuan and is equipped with Huawei’s Qiankun ADS Pro. This marked the first time high-end intelligent driving was pushed down to this price segment.The system covers full-scenario NOA on urban and highway roads. It utilizes a 27-sensor perception setup. Fuel consumption with a depleted battery is as low as 3.8 liters per 100 km. CLTC pure electric range reaches up to 300 km.Deepal’s strategy was clear. In a market where driver assistance is a real decision-making factor, it would leverage the trust inherent in the Huawei name. With versions featuring Huawei lidar selling briskly, cumulative sales of the Deepal S07 have surpassed 300,000 units since launch.Image Source: DeepalThe third path was a dual breakout via channels and overseas expansion. In April, Deepal partnered with JD.com. It made the Deepal L06 extended-range version an exclusive "People's Car 2.0" on the platform. Users can complete viewing, booking, ordering, and payment with one click in the JD app. They enjoy a 120-minute on-door test drive. Leveraging JD.com’s hundreds of millions of users and mature e-commerce system, Deepal quickly expanded its reach. It also lowered customer acquisition costs.With 245 km of pure electric range and 1,505 km of total range, the L06 extended-range version gained traction quickly after the JD exclusive launch. April orders surpassed 10,000. Actual sales hit 5,189, stabilizing above 5,000 units for two consecutive months.Overseas markets offer even greater potential. From January to May, Deepal’s overseas sales totaled 28,704 units. This is a surge of 167% year-on-year. Its core model, the S05, is priced between 38,990 and 44,990 euros in Europe. It has entered 66 countries and regions across Europe and Southeast Asia. Right-hand-drive versions are now rolling off the line at the Thailand Rayong plant. The model has been introduced to Pakistan as the first locally assembled extended-range electric SUV. Ranking high in sales across multiple markets, overseas performance has become a key long-term growth driver.Compared to the anxiety at the start of the year, Deepal has now secured its spot in the "30,000-plus" club. But the real test is just beginning. Escaping the trap of "selling more but losing less, yet still losing" is one challenge. Finding its distinct position within the Changan system alongside Avatr is another. These questions must be answered in the next growth phase. Letting products speak and using sales to silence doubt, Deepal has only just completed the first step.
