GAC to boost out­put to 1 mil­lion cars

China Daily (USA) - - BUSINESS - By QIUQUANLIN in Nan­ning qiuquanlin@chi­nadaily.com.cn

GAC Mo­tor Ltd — the Guangzhou-based car­maker fo­cus­ing on re­search and de­vel­op­ment of Chi­nese homegrown ve­hi­cles — will ex­pand its an­nual out­put ca­pac­ity to one mil­lion ve­hi­cles by 2020 from cur­rent lev­els of 400,000, amid grow­ing de­mand for high-end Chi­nese cars, its pres­i­dent said.

“We will launch more high­end va­ri­eties in the years ahead, based on our C-Class re­search and de­vel­op­ment plat­form,” saidWuSong, pres­i­dent of GACMo­tor.

In a sharp con­trast to a slow grow­ing do­mes­tic car in­dus­try, GAC Mo­tor has been forg­ing ahead. The com­pany sold 226,000 ve­hi­cles in the first eight months of this year, up 148 per­cent year-on-year.

Ve­hi­cle sales in the Chi­nese mar­ket grew only by 11.4 per­cent year-on-year from Jan­uary to Au­gust, ac­cord­ing to the China As­so­ci­a­tion of Au­to­mo­bileMan­u­fac­tur­ers.

“The big sales in­crease was based on our prin­ci­ple for years— tode­velop high qual­ity and safe cars,” saidWu, who is also vice gen­eral manger of Guangzhou Au­to­mo­bile Group Co, the par­ent com­pany of GAC Mo­tor. He was speak­ing dur­ing the an­nual Chi­naASEAN Expo in Nan­ning, the cap­i­tal of Guangxi Zhuang au­ton­o­mous re­gion.

The com­pany’s new­ly­launched sedan, the GA8, which is de­vel­oped un­der its high-end and lux­ury C-Class de­vel­op­ment plat­form, be­came des­ig­nated cars for guests of the an­nual expo, which con­cludes onWed­nes­day.

“We are con­sid­er­ing build­ing pro­duc­tion lines in South­east Asia, an im­por­tant mar­ket for the fu­ture growth of Chi­nese self-de­vel­oped cars,” Wu said.

GAC Mo­tor, which was founded in 2008, has be­gun con­struc­tion of its assem­bly line in Urumqi, the cap­i­tal of Xin­jiang Uygur au­ton­o­mous re­gion, fo­cus­ing on pro­duc­tion of medium and high-end SUV and newen­ergy ve­hi­cles.

“Es­tab­lish­ment of the Xi­jiang fa­cil­ity will al­low us to tap the far north­west China mar­ket and help meet the grow­ing de­mand for Chi­nese do­mes­ti­cally-made ve­hi­cles from coun­tries and re­gions along the Silk Road Eco­nomic Belt,” Wu said.

The com­pany is aim­ing for an ini­tial an­nual pro­duc­tion of 50,000 cars at the 1.6 bil­lion yuan ($244 mil­lion) plant, lo­cated in the Urumqi Eco­nomic and Tech­no­log­i­cal De­vel­op­ment Zone. It will even­tu­ally tar­get mak­ing 200,000 cars an­nu­ally un­der the brand of Trumpchi when it is fully op­er­a­tional.

GACMo­tor is also plan­ning to im­prove its assem­bly fa­cil­i­ties in Hangzhou, the cap­i­tal of Zhe­jiang province, after the com­pany ac­quired GAC Gonow in­March, the joint ven­ture be­tween Guangzhou Au­to­mo­bile Group Co and Zhe­jiang GonowHold­ings Group Co.

ZHANG HAIYAN / FOR CHINA DAILY

A woman plays vir­tual games in a car man­u­fac­tured by GAC Mo­tor Ltd dur­ing an auto expo in Bei­jing.

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