GAC: Construction of NEV Industrial Park, Joint Ventures with NIO and DiDi

Leading the increase in sales with its own Trumpchi brand and Japanese JV brands

2019/05/20

Summary

広汽グループの販売台数

 The Guangzhou Automobile Group Co., Ltd. (hereafter referred to as the GAC Group) is the sixth-ranking (as of 2018) automotive group in terms of sales volumes engaged in the manufacturing and sales of passenger vehicles and motorcycles, with its headquarters located in the city of Guangzhou, Guangdong Province.

 GAC Motor, which celebrated its tenth anniversary in 2018, has greatly increased its vehicle sales thanks to the major hit of its Trumpchi GS4 compact SUV in 2016, and established a solid position with its own brand models. From 2017, the automaker has actively partnered with emerging NEV automakers and companies from other industries, and has been engaged in the development and production of EVs on consignment as well as its own brand models. Additionally, the automaker is a participant in the GAC Group’s smart project taking place in its home city of Guangzhou, with plans to transition from a conventional manufacturing-centric company to a mobility service provider. Among the Group’s joint ventures, GAC has JVs with 3 out of 4 of the Japanese OEMs that produce passenger vehicles, namely GAC Honda, GAC Toyota, and GAC Mitsubishi, all of which are steadily increasing their vehicle sales and contributing to the increase in the GAC Group’s overall vehicle sales volumes.

 

 In 2018, although a number of automotive groups were unable to achieve the sales volumes of the previous year, the GAC Group performed solidly with a year-over-year (y/y) growth of 7.5% to 2.13 million vehicles, thanks to the healthy sales of its Japanese joint ventures.

 The GAC Group has set a production goal of 3 million vehicles and a vehicle sales target of 2.4 million units, including 100,000 new energy vehicles (NEVs) for 2020. To this end, the Group is strengthening its production capabilities, primarily by renovating existing GAC Motor plants and constructing new ones.

Rerated Reports:

Autonomous driving AI developments in China, and Denso’s approach to MaaS(Mar. 2019)
North American International Auto Show 2019: Asian OEMs(Feb. 2019)
2018 China market: 28.081M units for new car sales, 23.71M units for passenger cars(Feb. 2019)
Automotive Strategies of Alibaba and Tencent(Dec. 2018)
Honda: Partnering with IT companies in Japan, the U.S., and China on advanced technologies(Oct. 2018)
Overseas expansion of Chinese OEMs under the Belt and Road(Oct. 2018)



CASE Strategy: Construction of an NEV industrial park, joint ventures with NIO and DiDi

 The GAC Group aims to produce and sell 100,000 or more NEVs by 2020. The Intelligent NEV Industrial Park completed in December 2018 is the size of a small city, featuring production and R&D facilities, with a planned staff of over 20,000 people. The NEV Industrial Park, located in the Panyu district of Guangzhou, features an intelligent plant with a production capacity of 400,000 vehicles. It is also a green (ecological) plant, featuring solar power generators and electrical energy storage systems. GAC New Energy’s (GAC NE) new Aion S compact EV, featuring AI technology, will also be manufactured at this plant. In January 2019, the GAC Group announced the construction of its comprehensive testing center in Shaoguan, Guangdong Province, which will support the development testing of NEV, connected vehicle, and autonomous driving technologies.

Opening of an NEV industrial park ・The construction of the Intelligent NEV Industrial Park was announced in April 2017, and phase 1 of the construction was completed in December 2018. The industrial park has a planned annual production capacity of 400,000 vehicles, with 200,000 planned for first phase of the project. Production will begin in May 2019.
・With an investment amount of over CNY 45 billion, the project is comprised of three elements: intelligent manufacturing, innovative research and development, and an ecological town. The project is funded by the GAC Group and the companies that are planning to have a presence at the industrial park. The industrial park is expected to generate a total production value of over CNY 170 billion, with plans to employ over 20,000 people.
・The NEV industrial park will also feature the joint venture between GAC Motor and Aisin AW, GAC Aisin AW Automatic Transmission Co., Ltd. The joint venture will primarily focus on the production and sales of transmissions and the research and development, sales, and the after-sales of related components. A total of CNY 2.13 billion has been invested in the project, with production scheduled to begin in August 2020 for a planned annual production of 400,000 units.
・The joint ventures between the GAC Group and the Contemporary Amperex Technology Co., Ltd. (CATL), China’s largest battery manufacturer, GAC Amperex Power Battery System Co., Ltd. and Amperex GAC Power Battery Co., Ltd., will also be located at the NEV industrial park.
Testing center construction project ・The opening of a comprehensive automobile testing center for NEVs, intelligent-connected vehicles (ICVs), and autonomous driving related technologies in Shaoguan, Guangdong Province, was announced in January 2019.
・The site will have a total area of 853,000 square meters. A total of CNY 2.1517 billion will be invested over the course of the two project periods.

 

Electrification

 A battery-related joint venture between the GAC Group and the major automotive lithium-ion battery manufacturer CATL was established in July 2018. Batteries manufactured by the joint venture will not only be featured on GAC’s own brand vehicles but the joint venture NEV models such as GAC Toyota’s ix4 compact SUV.

 The GAC Group has partnered with emerging domestic NEV automakers as well as with companies from other industries, promoting the production of new EV models. In 2017, it announced the establishment of a joint venture with NIO, an automaker often referred to as the “Tesla of China.” In 2019, the GAC Group and NIO have agreed to work on a new model project. The GAC Group is also planning to design, develop, and manufacture next-generation EVs with the major ride-sharing company DiDi’s affiliated companies.

Establishment of battery-related companies
(CATL)

・Agreements to establish joint ventures between the GAC Group and CATL, GAC Amperex Power Battery System Co., Ltd. and Amperex GAC Power Battery Co., Ltd., were signed in July 2018.
・GAC Amperex Power Battery System Co., Ltd. will begin production at the end of 2019, and CNY 300 million has been invested in the project. Amperex GAC Power Battery Co., Ltd. will begin production at the end of 2020, and CNY 4.226 billion was invested in the joint venture.

Development of intelligent EVs
(DiDi)
・A signing ceremony between the GAC Group and ride-sharing giant DiDi's NEV management service platform company was held in April 2018.
・The project will leverage the GAC Group's experience in research and development, design, and production, and the experience of DiDi's affiliated companies in the field of intelligent EVs to design, develop, and produce next-generation intelligent EVs.
Joint venture with NIO and a new model project ・In December 2017, the GAC Group and NIO announced the establishment of a joint venture. The partners will collaborate extensively in the various fields related to connected cars and autonomous driving, while consolidating resources associated with NEV research and development, production, supply chains, sales service systems, and management methods such as leases, channel resources for its core business of components and related sales and service, brand expansion, big data analysis, and software development and application.
・A joint venture between the GAC Group and NIO, GAC NIO New Energy Vehicle Co., Ltd., was established in April 2018. The company has a capital of CNY 500 million, and the legal representative of the company is the founder of NIO, William Li. The company also initiated its Series A round of funding in April 2019.
・GAC will primarily focus on the development, research, and production of finished cars, while NIO will provide intelligent connected technology and energy-related support.
・The head office will be located in Nansha, Guangzhou, which will also function as a research and development center. Production will be outsourced to GAC New Energy Automobile. NIO Capital has a 22.5% stake, NIO a 22.5% stake, the GAC Group a 22.5% stake, GAC New Energy Automobile a 22.5% stake, and the founding members a 10% stake in the company. 
・GAC NIO’s model GN01 Project was approved at the board of directors meeting in March 2019. CNY 306.2 million will be invested in the project.
Development of NEV components
(Denso)
・A strategic alliance agreement was signed in November 2017. In addition to developing and sharing conventional combustion engine vehicle and NEV components, the partners will share technologies related to driver assistance systems and autonomous driving and intelligent driving technical platforms, as well as human resources development and intercompany communications.

 

Connected

 In May 2018, the GAC R&D Center and Tencent Cloud signed an agreement for the joint development of an intelligent connected cloud platform. Both parties will help construct the cloud platform for the GAC connected ecosystem. GAC already provides Tencent's cloud-based mobility services such as Tencent's in-vehicle television and the Weixin/WeChat instant messaging service featured on the GAC GS4 compact SUV. Furthermore, with the Trumpchi T-BOX (telematics box), drivers can use a smartphone app to control the in-vehicle environment, check the vehicle maintenance condition, and respond accordingly in the event of an emergency.

 In the area of interaction, GAC utilizes the startup company iFLYTEK's voice recognition technology to control the air conditioning, seat heaters, windows, and shades. In May 2018, the GAC R&D Center and iFLYTEK held the opening ceremony for its AI automotive technology innovation center.

Development of an in-vehicle network
(China Mobile)
・In April 2017, the GAC Group established a strategic partnership with the China Mobile Group in the field of telecommunications, announcing that the partners would be developing an in-vehicle network. In November, the partners signed an agreement to collaborate in five areas such as research pertaining to 4G connected and 5G in-vehicle networks, communications services, and marketing to improve the quality of products and services in the IoV domain.
Voice recognition and AI
(iFLYTEK)
・In December 2017, the GAC Group signed a strategic agreement with the voice-recognition startup iFLYTEK. The extensive partnership covers fields such as interactive technology, in-vehicle intelligentization, AI technology, big data analysis, intelligent in-vehicle network platforms, advertising, intelligent customer services, intelligent sales robots, and innovative marketing.
・In May 2018, iFLYTEK and the GAC R&D Center opened an AI automotive technology innovation center. It aims to increase the level of AI technology through fields such as voice technology for the development of future GAC production vehicles.
Cloud computing and big data (Huawei) ・In June 2017, the GAC Group signed a strategic agreement with Huawei related to cloud computing and big data. The partners will collaborate to establish basic big data infrastructure, data storage, analysis, high-performance computing, and informatization.
Connected-related services
(Tencent)
・The GAC Group signed a strategic alliance with Tencent in September 2017 covering connected car-related services, cloud computing, big data, ecosystems, intelligent-connected car marketing, advertising, e-commerce, auto insurance, and mobility. The partners plan to launch a mobility service in June 2019 (detailed later in the Sharing segment).
・The iSPACe, an EV concept car featuring the AI in CAR connected car system developed by Tencent and the five major Chinese OEMs, was announced at the 2017 Guangzhou Motor Show. The system is a combination of five features such as intelligent vocal services, content services, and operational added-value services, combined with AI technology and an ecosystem. The system is already equipped in GAC Motor's popular GS4 model.

 

Sharing

 In June 2019, the GAC Group will start the Guangzhou transport mobility project with Tencent Mobility (hereafter referred to as Tencent) and the Guangzhou Public Transport Group. The initial stages will see the project launched as a business-to-consumer (B2C) service where NEV models will be made available in Hong Kong, Macau, and the bay area in Guangdong Province, with plans to expand the project to five cities within its first year. The GAC Group is also participating in the smart city project taking place in the Panyu district in Guangzhou, further indicating that the OEM aims to make the transition from a conventional manufacturing company to a mobility service provider.

Launch of the mobility service project ・Through its wholly-owned subsidiary China Lounge Investments Limited, at the end of January 2019 the GAC Group announced it would be establishing a mobility platform company together with Tencent, the Guangzhou Public Transport Group, as well as other investors. Through the establishment of a mobility platform company, the automaker aims to expand its automotive service industry chain and make the strategic transition to become a mobility service provider.
・The GAC Group has a 35% stake, Tencent has a 25% stake, and the Guangzhou Public Transport Group has a 10% stake, while other investors claim a total stake of 20%. The remaining 10% stake will be employee-owned shares.
・The GAC Group will also establish a mobility-related service provider through its wholly-owned subsidiary, GAC Business Co., Ltd., with the Guangzhou Public Transport Group (or its subsidiary) and a mobility platform company (or its subsidiary), with each company owning a 45%, 45% and 10% stake, respectively. A total of CNY 520 million will be invested in the project.
・A mobility project by the GAC Group, Tencent, and the Guangzhou Public Transport Group will launch in June 2019. CNY 1 billion has been invested in the project.
・In the initial stages, the project will deploy customized connected NEVs as a B2C service. The service will start in Guangzhou, later expanding to five cities within a year. 10,000 NEVs will be introduced in the Guangdong-Hong Kong-Macao Greater Bay Area, and later expanded to the rest of the country.

Mobility systems and intelligent transportation systems (Cisco)

・In April 2018, the GAC Group announced it would be participating in the smart city project organized by Cisco (China) in the Panyu district of Guangzhou. The Group will focus on providing connected technology and solutions, as well as establishing intelligent transportation systems and mobility systems.

 

Autonomous driving

Verification testing ・In 2013, the GAC Group developed its first driverless vehicle. In November 2017, its WITSTAR II driverless vehicle won second place in the China Intelligent Vehicles Future Challenge. Likewise, the vehicle developed jointly with Xi'an Jiaotong University won first place.
・In April 2018, the GAC Group obtained its first autonomous driving test license in Chongqing.
・In February 2018, the GAC Group entered into a strategic partnership with startup Pony.ai., which has already obtained a license for autonomous driving testing in California. The partnership covers areas such as autonomous driving technology, capital, driverless field testing management, and mobility.
・In November 2018, the GAC Group began verification testing for China's first self-driving taxis in Guangzhou.


Overview of 2018 and plans for 2019

 The GAC Group is an automotive group company and a subsidiary of the Guangzhou Automobile Industry Group Co., Ltd. The automaker was sixth in terms of annual vehicle sales in 2018. In comparison to other state-owned group companies, it has a higher number of Japanese joint venture subsidiaries. While many groups saw their vehicle sales decline in 2018, the GAC Group saw a steady y/y growth of 7.5% to 2.13 million vehicles thanks to the strong sales of its Japanese brand JV vehicles.

 The 2018 vehicle sales for GAC Toyota, a subsidiary of the GAC Group, saw a y/y increase of 31.1% to 580,000 vehicles, with all models seeing an increase in sales. The updated Camry, released in November 2017 and meeting the China VI emissions standard, saw its sales double y/y to 163,000 vehicles. GAC Honda's Acura brand struggled, but the Honda brand's sedans and hatchbacks such as the Accord and Jazz enjoyed healthy sales. GAC Motor, which manufactures its own brand models, saw a y/y growth of 5.2% to 535,000 vehicles for its Trumpchi brand.

 The GAC Group plans to introduce 14 new or updated models in 2019, with 6 models from its own brands. Additionally, while the China Association of Automobile Manufacturers (CAAM) expects vehicle sales to remain at levels similar to 2018, the Group is targeting a y/y increase of 8%. According to an announcement by the automaker, its production volumes in March 2019 saw a y/y decrease of 1.1% to 189,698 vehicles, while its sales volumes saw a y/y decrease of 0.3% to 182,760 vehicles.

OEM

2018 vehicle sales
(thousand vehicles)
y/y
(%)
Major Brand /Model
GAC Honda 731.9 5.9% Honda brand: Odyssey, Accord, Avancier, Fit, City Fengfan, Crider, Vezel, Shirui
9.4 -33.8% Acura brand:CDX, RDX, TLX
0.1 - Everus brand:VE-1
GAC Toyota 580.0 31.1% C-HR, Yaris/Yaris L, Camry, Highlander, Levin, ix4
GAC Motor 535.2 5.2% Trumpchi brand:GA3, GA4, GA6, GA8, GE3, GM6, GM8, GS3, GS4、GS5, GS7, GS8
GAC Mitsubishi 144.0 22.7% Eclipse Cross, RVR (ASX/Outlander Sport) , Outlander, Pajero Sport), Qizhi
GAC FCA 0.4 -83.3% Fiat brand: Ottimo, Viaggio
124.8 -38.5% Jeep brand: Compass, Renegade, Cherokee, Grand Commander
GAC Hino 4.3 65.4% Semitrailers、Heavy trucks, ohters
Honda Automobile(China) 12.8 -30.2% Export: City Fengfan

(Source: Created based on MarkLines' database)

 

広汽グループのメーカー別販売台数割合 広汽グループにおけるメーカー別販売台数推移


Own brands: Strengthening production capacity and globalization

 GAC Motor's Trumpchi brand, which celebrated its tenth anniversary in 2018, saw rapid growth that clearly outperformed all other own brands. The GS4 compact SUV released in 2015 was a smash-hit model, with a y/y growth in vehicle sales of 149.1% to roughly 327,000 vehicles in 2016, greatly contributing to the growth in vehicle sales for the group. Trumpchi later released more SUVs from its GS Series. In 2017, the brand released its GM Series of MPV models. NEV models are sold by GAC NE.

 According to an announcement by the GAC Group, GAC Motor vehicle sales in March 2019 saw a y/y decrease of 37.6% to 33,806 vehicles. Its cumulative sales from January to March 2019 saw a y/y decrease of 41.0% to 88,038 vehicles, reflecting a massive downturn from its strong sales in recent years.

 

Trumpchiの販売台数推移 自主ブランド乗用車におけるSUVの割合

 

 

 GAC NE's Aion S EV, for which pre-order sales began in March 2019, features the AI System 2.0. The system supports features such as intelligent voice control and in-vehicle mini-programs, advanced mapping systems, OTA upgrade support for all systems, driver-assistance features for congested traffic conditions, intelligent cruise assist, and autonomous parking assist. At the Shanghai Motor Show 2019, the fully redesigned GA6 and the Aion LX SUV model based on the GAC Electric Platform, GAC NE's GEP EV-exclusive platform, were unveiled. The Aion LX is equipped with GAC NE's Adigo autonomous driving system, which the automaker states has achieved Level 3 autonomous driving capability.

The Aion LX has a driving range of over 600 km (Auto Shanghai 2019) GAC Electric Platform(Auto Shanghai)
All NewGA6(Auto Shanghai 2019) The Aion S EV model(Auto Shanghai2019)

 

Increasing production capacity

Renovations at the Hangzhou plant ・The plant operated by Gonow Auto, which became a subsidiary of the GAC Group in 2016, and located in the Hangzhou Dajiangdong Industrial Cluster, was renovated in December 2017, and the GA4 compact sedan rolled off the production line.
・A total of CNY 8 billion was invested in the first phase of renovations, which converted the plant to an intelligent plant with an annual production capacity of 200,000 vehicles, with plans to eventually reach 400,000 units. As of December 2018, the plant has an annual production capacity of 150,000 vehicles.
Renovations at the Yichang plant ・Installation of equipment at the Yichang plant in Hubei Province (Zhongxing Auto (current Run Pard) plant) currently undergoing renovations began in mid-August 2018.
・The plant, which is scheduled to come on stream in June 2019, has an annual production capacity of 200,000 vehicles. A total of CNY 3.53 billion has been invested in the plant. The plant will manufacture Trumpchi brand compact sedans and SUVs.
Xinjiang plant comes on stream ・The phase one investment amount was CNY 1.08 billion. The plant has an area of 330,000 square meters and an annual production capacity of 50,000 vehicles. The plant will produce mid-range and high-end SUVs and NEVs. Phase two of the project will increase the annual production capacity to the level of 100,000 vehicles, depending on market demand.

 

Globalization

 GAC Motor announced at the Russia Motor Show in August 2018 that it would be entering the Russian market, and it also announced the establishment of GAC Motor RUS at the St. Petersburg International Motor Show held in April 2019. Likewise, it announced the release of three models (the GS8, GM8, and GS5). Of the three models to be released, the GS8 MPV is scheduled to be released first in the second half of 2019. GAC in Russia plans to establish a dealership network and become a major brand, covering the top twenty cities in sales over the course of three to five years. Additionally, in November 2018 the OEM held ceremonies in the Philippines and Saudi Arabia to commemorate its entry in those respective markets.
 Meanwhile, while although the automaker planned to enter the U.S. market in 2019, its entry has been delayed to the first half of 2020 due to the ongoing U.S.-China trade dispute.

 



Foreign-owned joint venture brands: Japanese joint venture OEMs to make adjustments for the NEV credit system

 The GAC Group has joint ventures with four Japanese OEMs (Honda Motor, Toyota Motor, Mitsubishi Motors, and Hino Motors) and FCA, giving it the most joint ventures with Japanese OEMs in comparison to other automotive group companies. Japanese-brand vehicles comprised roughly 70% of the GAC Group’s vehicle sales in 2014 and 2015, but with the increase in sales of GAC Motor vehicles, this percentage of Japanese JV vehicles has dropped to around 60% since 2016.
 

GAC Honda

 GAC Honda, which celebrated its 20th anniversary in 2018, manufactures vehicles from the brands of Honda, Acura, and Everus, its own brand. In 2018, vehicle sales volumes increased 5.2% y/y to 741,000 vehicles. SUV sales declined for the first time ever, and the three models released from the Acura brand in 2016 all struggled to grow. According to an announcement by GAC Honda, Q1 vehicle sales experienced a y/y growth of 11.4% to 188,000 vehicles.

 The Everus VE-1, the China-exclusive EV model released in November 2018, is a compact SUV based on the Vezel. The vehicle features a permanent-magnet synchronous motor with a maximum output of 120 kW and a maximum torque of 280 Nm. The front and rear badges are emblazoned with the unique Everus brand emblem, while the bottom left section of the rear displays the automaker’s name, GAC Honda. The Shirui PHV, released at the same time, bears a GAC emblem. The Shirui’s motor has a maximum output of 130 kW and a maximum torque of 300 Nm, and a fuel economy of 1.8 liters per 100 km, giving the vehicle a maximum range of over 600 km.

 In October 2018, GAC Honda announced an NEV production expansion project, and will establish a manufacturing system with a production capacity of 170,000 vehicles. At the Shanghai Motor Show 2019, the OEM unveiled its Odyssey Hybrid, scheduled for release in April.

Increased production capacity to produce 170,000 NEVs ・An NEV production expansion project was announced at the end of October 2018. GAC Honda will build a new manufacturing site with an annual production capacity of 120,000 vehicles. A total of CNY 2.99 billion was invested in the project.
・GAC Honda will convert existing assembly workshops into NEV assembly shops and install additional facilities for NEVs, giving the automaker an annual production capacity of 50,000 NEVs. CNY 276.06 million was invested in the project.
Joint development of EVs and sharing with the Neusoft Group ・In September 2017, the joint development of EVs for release in China was announced. In December GAC Honda signed an agreement to invest in Reachstar, a subsidiary of Neusoft Reach, which itself is a subsidiary of Neusoft. The partners will also collaborate in a car-sharing business, which will be expand to include GAC Honda models as well. Incidentally, Neusoft Reach Automotive Technology (Shenyang) Co., Ltd. is a supplier of battery packs for GAC Motor’s NEVs.

 

The China-exclusive EV model, the Everus VE-1, scheduled for release in Q3 (Auto Shanghai2019) Odyssey Hybrid(Auto Shanghai 2019)

 

GAC Toyota

 GAC Toyota’s 2018 sales volumes grew 31.1% y/y to 580,000 vehicles. The Camry, which underwent a full redesign in November 2017, doubled in sales y/y to 163,000 vehicles, greatly contributing to the growth in the automaker’s vehicle sales.

 Of the electric vehicles Toyota announced at the Beijing Motor Show 2018, two models (an EV and PHV) have been released by GAC Toyota. The ix4 EV released in September 2018 is a compact SUV that uses the same platform as the GS4, a popular model from GAC Motor. The vehicle is also equipped with a CATL tertiary lithium-ion battery and a permanent magnet synchronous motor with a maximum output of 132 kW and a maximum torque of 290 Nm. Through a smartphone app, drivers can control the interior environment as well as check vehicle status and positioning. The front and rear of this model features the GAC emblem while the bottom left of the rear displays the GAC Toyota badge. 1000 ix4’s were sold in 2018. The Levin PHV was released in March 2019.

 According to the annual report released by the GAC Group, in 2019, in addition to the Levin PHV, the popular Levin Hybrid will see an update, and a new EV model is also scheduled for release. The C-HR EV, which celebrated its world premiere at the Shanghai Motor Show 2019, is scheduled for release in 2020.

The C-HR EV, slated for release in 2020 (Auto Shanghai 2019)

The Levin PHV, released in March 2019 (Auto Shanghai 2019)


 GAC Toyota, which will aggressively introduced a number of NEV models in 2019, will expand its production line 3 at the Nansha Plant in Guangzhou. In December 2019, phase two will come on stream, giving line 3 an annual production capacity of 220,000 vehicles.

Expansion of production line and adjustment of plant production capacity ・Line 3 at the Nansha Plant in Guangzhou came on stream in January 2018. In the first phase, the plant had an annual production capacity of 100,000 vehicles, while phase two, which is scheduled to come on stream in December 2019, will give the plant a total production capacity of 220,000 vehicles. Line 3 manufactures 90,000 small low-class models and 130,000 small high-class models. The total production capacity of lines 1 through 3 will increase from the current 480,000 to 600,000 units.
・In conjunction with the expansion of line 3, the production capacity of the existing lines 1 and 2 will be adjusted. After the adjustments, the production capacity of line 1 will decrease from 210,000 to 190,000 vehicles, and line 2 will increase from 170,000 to 190,000 units.

 

 After the completion of the line 3 expansion, the production quantities of line 1 and 2 will be adjusted as follows.

Nansha plant Before adjustments After adjustments
First production line 210,000 units Camry(210,000 units), Yaris(70,000 units),
Highlander(50,000 units), E'Z/Verso(50,000 units)
190,000 units Camry(190,000 units) , Small LowClass(40,000 units),
Highlander(100,000 units), E'Z/Verso(50,000 units)
Second production line 170,000 units 190,000 units

 

GAC Mitsubishi

Eupheme PHEV
Zhichi PHEV(Beijing Autoshow 2018)

 GAC Mitsubishi, which started operations in 2012, is a joint venture OEM headquartered in Nansha, Hunan Province. The GAC Group, Mitsubishi Motors, and the Mitsubishi Corporation have a 50%, 30%, and 20% stake, respectively. In 2018, the automaker's sales volumes increased 22.7% y/y to 144,000 vehicles, and all of its models are SUVs. The Qizhi, announced in 2018, was the first PHV manufactured locally by a foreign joint venture. The model later saw the release of an EV variant. GAC Mitsubishi, which has increased its vehicle sales since 2017, announced the construction of a research and development center and an automotive component industrial park in October 2018.

 

Construction of a research and development center ・The construction of the GAC Mitsubishi research and development center and automotive component industrial park, in which a total of CNY 1.14 billion has been invested, was announced in October 2018. The center will be constructed in Changsha, Hunan Province, and is scheduled to be operational in December 2020.


GAC Group sales numbers in China (factory shipments)

(units)

OEM’s   Type Model 2016 2017 2018 Jan.-Feb.2018 Jan.-Feb. 2019
GAC Honda Acura SUV Acura CDX 6,842 14,111 6,612 737 815
Acura RDX 0 0 604 0 728
Sedan/Hatchback Acura TLX 0 134 2,208 281 280
Honda MPV Odyssey 40,029 35,639 45,498 6,198 4,388
SUV Avancier 9,445 86,455 80,848 14,998 10,169
Shirui 0 0 100 0 170
Vezel 164,084 144,947 141,600 22,063 16,414
Sedan/Hatchback Crosstour 6,130 5 0 0 0
Accord 136,246 149,649 176,770 32,169 32,467
Fit/ Jazz 113,596 111,634 129,179 14,207 22,155
City Fengfan 70,841 64,007 44,751 5,397 3,485
Crider 87,405 98,429 113,107 15,927 24,608
Everus SUV Everus VE-1 0 0 100 0 0
Sedan/Hatchback Everus S1 4,173 0 0 0 0
Total 638,791 705,010 741,377 111,977 115,679
GAC
Toyota
MPV E'Z (Verso) 6,675 1,424 0 0 0
SUV C-HR 0 0 22,720 0 9,325
Highlander 92,000 99,996 104,856 13,055 15,093
GAC ix4 0 0 999 0 0
Sedan/Hatchback Yaris/Yaris L 63,443 94,005 95,690 14,088 20,806
Camry 100,611 74,329 163,046 19,232 24,914
Levin 159,071 172,626 192,697 21,818 36,768
Total 421,800 442,380 580,008 68,193 106,906
GAC Motor MPV Trumpchi GM6 0 0 1,976 0 7,252
Trumpchi GM8 0 550 30,769 1,776 2,698
SUV Trumpchi GE3 0 1,762 8,852 978 2,187
Trumpchi GS3 0 18,241 89,310 14,283 13,421
Trumpchi GS4 327,006 337,330 246,636 52,188 12,076
Trumpchi GS5 7,526 1,419 14,598 0 9,897
Trumpchi GS7 0 8,262 25,350 5,863 791
Trumpchi GS8 9,006 102,214 61,773 12,023 3,645
Sedan/Hatchback Trumpchi GA3 8,274 8,207 2,548 136 161
Trumpchi GA4 0 0 36,266 2,234 1,693
Trumpchi GA5 3,401 869 0 0 0
Trumpchi GA6 12,746 25,032 12,975 4,255 186
Trumpchi GA8 2,809 4,700 4,115 1,400 225
Total 370,768 508,586 535,168 95,136 54,232
GAC Mitsubhishi SUV Eclipse Cross 0 0 5,738 0 2,920
ASX/
Outlander Sport
35,146 29,333 29,789 6,531 3,702
Outlander 16,655 84,708 105,621 18,910 12,030
Qizhi 0 0 2,870 247 454
Pajero Sport 4,087 3,347 0 0 0
Total 55,888 117,388 144,018 25,688 19,106
GAC FCA Fiat Sedan/Hatchback Ottimo 5,213 651 27 21 0
Viaggio 7,835 1,625 354 0 19
Jeep SUV Compass 300 86,980 63,074 10,905 7,128
Renegade 26,264 38,739 17,240 3,500 1,172
Cherokee 106,827 77,182 31,020 7,026 3,211
Grand Commander 0 0 13,466 0 2,513
Total 146,439 205,177 125,181 21,452 14,043
GAC Hino Semi trailer (25t-40t) (Hino) 1,286 1,761 3,282 278 233
Heavy Trucks (Chassis) 515 840 1,021 240 123
Total 1,801 2,601 4,303 518 356
GAC Motor
(Hangzhou)
GAC
Gonow
MPV Xinglang 326 1 0 0 0
SUV GX5 1 0 0 0 0
GX6 52 1 0 0 0
Aoxuan 2 0 0 0 0
AoxuanG5 0 1 0 0 0
AoxuanGX5 0 1 0 0 0
Sedan/Hatchback Gonow-Emei 9 0 0 0 0
Mini vans Xingwang
(GA6530/6380)
494 3 0 0 0
GAC Motor
(Hangzhou)
Light trucks 95 0 0 0 0
Small Buses 638 0 0 0 0
Total 1,617 7 0 0 0
Grand Total 1,637,104 1,981,149 2,130,055 322,964 319,761
Honda*1
(China)
Sedan/Hatchback Accord 7,170 0 0 0 0
City Fengfa 4,377 18,320 12,791 2,091 1,652
Total 11,547 18,320 12,791 2,091 1,652

*1: In August 2018, Honda transferred 65% of its shares of Honda Automobile (China) to GAC Honda.

(Source: Created based on MarkLines' database)



Production forecast by LMC Automotive: GAC's own brand production to reach 630 thousand units in 2022

LMC Automotive,Feb.2019)

広汽グループの自主ブランドの生産予測

According to LMC Automotive's production forecast(Feburary 2019), GAC's own brand production is expected to be 558 thousand units in 2019, up 1.3% year-over-year (y/y). After that, production will level off in 2020. In the medium-term, GAC production will continue to grow steadily, reaching 630 thousand units in 2022.

GAC is one of the fastest-growing Chinese brands over the last two years. Its momentum is set to continue, driven by ongoing launches of new generation products. The brand’s SUV portfolio has been strengthened to maximize the current boom in the segment, with the addition of both Midsize and Sub‐Compact models. In contrast, sales of GAC’s Car products are projected to remain subdued.

 GAC brand “Trumpchi” has made strong progress of late. Its GS4 SUV has been very successful, posting both volume and margin gains. This star model lost market share in 2018, however, it is now well advanced in its lifecycle. In contrast, some of the brand’s younger models, such as the GS3, GA4 and GM8, have performed remarkably well since hitting the market, fostering steady growth for GAC in 2018. Moving through 2019, we expect the OEM to retain its current market share.

 GAC has enjoyed robust growth in recent years, thanks to the outstanding performances of its SUV products, and plans to introduce several new SUV models in the future. The group is also seeking to expand its share within the Car and MPV segments by extending its product lines, in a bid to narrow the gap with the top three Chinese brands.

 

GAC's light vehicle production forecast by make (LMC Automotive, February 2019)

(台)

COUNTRY GLOBAL MAKE 2016 2017 2018 2019 2020 2021 2022
China Trumpchi 380,754 512,317 550,474 557,737 556,674 592,102 632,395
GAC Bus 17 0 0 45 51 58 61
Gonow 372 0 0 0 0 0 0
Total 381,143 512,317 550,474 557,782 556,725 592,160 632,456

Source: LMC Automotive "Global Automotive Production Forecast (February. 2019)"
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
For more detailed information or inquiries about forecast data, please contact LMC Automotive.


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Keywords
China, NEV, EV, PHV, GAC, Russian, CATL, Denso, Aisin AW, NIO, Electric, Connected, Autonomous, Shared, Accord, Fit, Camry, C-HR, Compass, Honda, Toyota, Mitsubishi, FCA, Hino, Huawei, DiDi, Battery

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