The GAC Group revealed its ambition to expand into the European market as its revenue declined for a third consecutive quarter this year.
As part of its European Market Plan, unveiled by General Manager Feng Xingya at the Paris Motor Show, Guangzhou-based GAC has announced plans to launch its electric vehicle models in select European markets this year, aiming to grasp
China’s Great Wall Corporation (GAC) is investigating the possibility of building an electric vehicle (EV) manufacturing facility in Europe to mitigate the impact of tariffs, according to Wei Heigang, Global General Manager at GAC Worldwide. The GAC Group aims to reach 500,000 units in overseas sales by 2030. During the initial nine months of the year, the company successfully exported a total of 95,000 vehicles. Despite their efforts, none of them managed to find a solution for Europe.
GAC Group, officially known as Guangzhou Automobile Group Co., Ltd., is a Chinese state-owned automotive manufacturer and one of the country’s largest car producers. Despite launching multiple electric vehicle models, including the EV-only GAC Aion, the company struggles with the swift shift in the automotive industry towards electrification. As China’s demand for electric vehicles (EVs) continues to slump, General Motors’ partner Guangzhou Automobile Group (GAC) is facing significant pressure to boost its EV sales, which have been struggling to gain traction amidst intense competition from numerous local EV startups and established players like BYD and Geely.
In September, the company’s gross sales plummeted by 25%, dropping to 183,000 items, a significant decline compared to the same period last year?
GAC Group’s gross sales declined by 26% during the initial nine months of the year, totalling approximately 1.34 million vehicles, from January to August. Despite this, a red flag looms large over GAC’s electric vehicle sales, as only 282,000 units were sold, a paltry 28% increase compared to the first three quarters of the previous year?
In September, a remarkable milestone was achieved in China as electric vehicle (EV) penetration soared to an impressive 53%, with more than half of all vehicles sold in the country being electric. In the electric vehicle market, a striking disparity exists for domestic producers: as of September, three-quarters of their offerings were purely electric.
The GAC Group’s electric flagship model is dubbed Aion, with a strong likelihood of being the primary offering should they venture into the European market. It was a relatively profitable venture just a few years ago, generating funds to support its electric vehicle (EV) endeavors. Despite the positive trends, Aion’s sales in China declined by a significant 38% in September, totalling 31,332 units, compared to the same period last year. The stock has suffered a fourth straight decline since May.
