Guangzhou Automobile: Aiming to achieve an annual production capacity of 3 million vehicles by 2020
Expansion of own brands and acceleration of overseas roll out
As of 2015 Guangzhou Automobile Group Co., Ltd. (GAC Group), a state-owned group company in the South China region, was the sixth largest automaker in China. In 1998 the company signed a joint venture agreement with Honda Motor Co., Ltd. for its 4-wheeler business, and as a results of factors including a revision of the management structure at its plants and success of the state-of-the-art U.S. spec "Accord", its sales were boosted. In 2004, the OEM started a joint venture with Toyota Motor Corporation, And at the end of 2010 it introduced its "Trumpchi" own brand to the market.
In 2013 GAC Group's automobile sales (factory shipments) were approximately 956 thousand vehicles and have grown steadily since, exceeding 1 million units in 2014, and hitting approximately 1.284 million in 2015. Furthermore, in 2015, SUV models accounted for 25.2% of the Chinese market, with GAC Group holding a large share of 33.2% of this segment.
In 2015, GAC Group had a market share of approximately 5.2%, but in the first half of 2016 (January to June) it sold approximately 732 thousand vehicles for strong growth of around 32.1% year-over-year (y/y), and an increase in market share to 5.7%.
GAC Group aims to sell 2.4 million vehicles and have a production capacity of 3 million vehicles by 2020. In order to achieve this goal, the OEM will focus on developing vehicles for its own brands as well as new energy vehicles, accelerate overseas expansion, and provide various automobile-based customer services through cooperation with other companies.