GAC: Aiming to Sell Over 4.75 million Units by 2030

Battery and electric powertrain plants; Focus on smart mobility; KD plant expansion overseas

2024/10/30

Summary
Electrification: Battery and powertrain plants in operation, installation of all-solid-state batteries in vehicles in 2026
Intelligent driving: 3-year focus on intelligent driving, intelligent cockpit, and mobility
Globalization: KD plants to be located in Africa and Southeast Asia, targeting exports of 500K units by 2030
JVs with overseas OEMs: Adjustment of GAC Mitsubishi and GAC Hino, conversion to electrification of GAC Toyota and GAC Honda
GAC Group's sales volume in China (factory shipments)
GlobalData Production Forecast: GAC Group’s light vehicle production in 2027 will be 787k units

Summary

　According to MarkLines’ data, Guangzhou Automobile Group Co., Ltd.’s (GAC’s) sales volume (shipments from Chinese factories) in 2023 increased 2.9% year-over-year (y/y) to 2,506,000 units, making it the fourth largest automaker in China. Of this total, 906,000 were own-brand vehicles (including OEM production), 1,600,000 were foreign-brand vehicles, and 551,000 were New Energy Vehicles (NEVs: BEVs, PHEVs, and FCEVs). GAC's sales in the period January to August 2024 were down markedly, with both its own-brands and foreign brands down more than 20%.

　In electrification, GAC is adhering to two lines: "EV+ICV" (electrification + intelligent connected) and "XEV+ICV" (hybridization + intelligent connected). GAC Aion New Energy Automobile Co., Ltd. (GAC Aion) increased its annual production capacity to 600,000 units per year, and battery and electric powertrain plants have been put into operation one after another. Mass production of solid-state batteries will begin in 2026.

　In the area of Intelligent mobility, the company released its Smart Mobility 2027 action plan. Over the next three years, GAC aims to be a pioneer in product experiences (intelligent driving/intelligent cockpit) and mobility scenarios (ride-sharing/group travel/flying cars).

　In terms of globalization, the overseas sales volume target for 2024 is 150,000 units, and GAC aims to export 500,000 units by 2030. GAC already operates several assembly plants in Africa and Southeast Asia. Of these, GAC Aion's Thai plant began operations in July 2024.

　As for joint ventures with overseas-based OEMS, following the bankruptcy of GAC Fiat Chrysler Automobiles Co., Ltd. (GAC FCA) and the adjustment of the capital structure of GAC Mitsubishi Motors Co., Ltd. (GAC Mitsubishi) and GAC Hino Motors Co., Ltd. (GAC Hino), the main foreign joint ventures in which GAC currently has a stake are GAC Toyota Motor Co., Ltd. (GTMC) and GAC Honda Automobile Co., Ltd. (GAC Honda). Both joint ventures are promoting the shift to electrification, but have yet to see any concrete results.

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