GUANGZHOU – GAC Group will establish a new energy vehicle firm to support the fulfilment of its business target set for 2020, according to a report on qctt.cn citing company information.
GAC Group will invest ¥600 million ($87.21 million) to establish its wholly-owned NEV subsidiary with registered capital of ¥300 million at the first phase.
At the same time, it will also inject ¥2.264 billion to its passenger vehicle arm to facilitate its 200,000 vehicle output capacity expansion project.
Last year, GAC Group formed GAC Motor NEV Branch to undertake research and development of NEV technologies and products. In April this year, GAC Group broke ground for its smart NEV industrial park, which has a land area of about 5,000,000 square meters. The park will include workshops for production of smart NEVs, power assemblies and key auto parts. A shared smart manufacturing platform will be available by the end of 2018.
Currently, the company has launched its independent brand Trumpchi GA5 PHEV to the market for sale, and its other Trumpchi NEV models include GA3S PHEV, GS4 PHEV, GA6 PHEV, GS4 EV and EV Coupe.
As planned, annual production and sales of Trumpchi brand vehicles will exceed 1 million units by 2020, of which, 200,000 units will be NEVs.
GAC Group sold 165,500 vehicles in May, up 22 percent on a yearly basis. Sales in the first five months of the year totaled 792,500 units, an increase of 33.16 percent.