The relatively young GAC Motors is one of China’s best-respected vehicle brands. The company has a defined EV strategy and will add three models to its EV fleet in 2017.
Guangzhou Automobile Group Topped the “2016 BEST CHINESE CAR BRAND” Customer satisfaction survey.
Guangzhou Automobile Group Co, Ltd. founded in 2005 has various Joint Ventures with large international auto manufacturers such as Toyota, Hino, and Honda. Wanxiang Group, a large auto-parts manufacturer, and owner of Karma Automotive, previously known as Fisker Automotive, is one of the founding shareholders.
GAC MOTOR established its New Energy division at the end of 2015. The division focused on developing its R&D and production to penetrate the growing Chinese market for EV’s. The New Energy strategy is supported by GAC Group’s “1513” new-energy development strategy which makes the development of an R & D platform, R & D of core technologies a key development direction for its products.
GAC has international ambitions and aims to establish sales and service networks in 14 countries, including North America, Africa, South and Eastern Europe and South East Asia. GAC has reaped the rewards of creating a world-class vehicle brand and sold more than 380,000 vehicles in 2016, compared to around 194,000 the previous year, and has achieved 80 percent compound annual growth rate from 2011 to 2016. The company expects to sell 500,000 cars in 2017 and plans to produce 1 million cars in 2020. The Group targets 200,000 new energy vehicles in 2020 and meeting fuel consumption targets of 5.0L/100Km over its model range. In 2016 GAC Trumpchi delivered a total of 3,378 units of its GA5 PHEV model, an increase of 167% on 2015.
To support its strategy, Guangzhou Automobile Group passed two resolutions impacting EV development at its Board of Directors meeting on June 5th, 2017.
- It was resolved that a new company would be established for the Groups New Energy Vehicle (NEV) program. The company would be named GAC New Energy Automotive Co. Ltd. and would be capitalized to the tune of RMB 300m.
- It was further resolved to increase the GAC Motor’s capital with RMB 2.26b to expand its annual EV capacity of 200,000 units by 2020. GAC Motor is launching nine new Trumpchi models, of which three is NEV models, namely the GE3 BEV crossover, GS4 PHEV and GA6 PHEV.
GAC Motors are also pursuing other electric mobility solutions. In February 2016, Guangzhou Lixin Taxi Company owned by GAC Access launched more than 200 Levin twin-engine HEVs into Guangzhou taxi market. Also, GAC Group fully mobilizes the creativity of various business sectors and is actively devoted to new energy and energy conservation and environmental protection. GAC Motors and BYD established a JV in 2015 to co-operate in EV development. As a result, the company launched 400 pure electric buses produced by GAC BYD New Energy Bus Co., Ltd. into Guangzhou public transport system to provide services for citizens. The JV company is 51% owned by GAC and has a registered capital of 300m RMB.
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