In response to the recent tariffs imposed by Europe and the United States on Chinese-made electric vehicles, GAC Group is actively pursuing an overseas localized production strategy. The company has announced plans to build vehicle assembly plants in Europe and South America by 2026, with Brazil emerging as its main candidate for building a plant in South America. This strategic move not only aims to mitigate the impact of tariffs, but also enhances GAC Group’s global influence in the emerging new energy vehicle market.
Wang Shunsheng, senior vice president of international operations at Guangzhou Automobile Group, acknowledged the significant challenges posed by tariffs but emphasized the company’s commitment to a global expansion strategy. “Despite the obstacles, we are determined to increase our presence in international markets,” he said. Setting up assembly plants in key areas will help GAC Group better serve local markets, reduce tariff costs and establish closer ties with consumers in these areas.
The decision to prioritize Brazil as a location for the plant is particularly strategic given the country’s growing demand for electric vehicles and its commitment to sustainable transportation solutions. Through localized production, GAC Group aims to not only meet the needs of Brazilian consumers but also contribute to the local economy through job creation and technology transfer. The initiative is in line with Brazil’s broader goals of reducing carbon emissions and promoting environmentally friendly transportation options.
Although GAC has not disclosed the specific countries in Europe where it plans to build factories, the company has made significant progress in the ASEAN region and has opened approximately 54 sales and service outlets in nine countries. By 2027, GAC Group expects to expand its sales and service centers in ASEAN to 230, with the goal of selling about 100,000 vehicles. The expansion highlights the company’s commitment to building a strong network to support the adoption of new energy vehicles in different markets.
China has become a global leader in new energy vehicle technology, with its advances in batteries, motors and electronically controlled “tri-power” systems setting standards for the industry. Chinese companies dominate the global power battery sales market, accounting for half of the market share. This leadership is driven by the development of key raw materials necessary for battery production, including cathode materials, anode materials, separators and electrolytes. As GAC expands its business internationally, it brings a wealth of technical expertise that could greatly benefit the local automotive industry.
In addition, GAC Group’s continuous optimization of cost control has made its new energy vehicles not only technologically advanced, but also economically feasible. Through innovative manufacturing processes and large-scale production, the company has successfully integrated high-end technologies such as 800V platform architecture and 8295 automotive-grade chips into models under RMB 200,000. This achievement changes the perception of electric vehicles, making them more accessible to consumers and facilitating the transition from gasoline to electric power. The transition from “same price” to “lower electricity than oil” is a critical moment to promote the widespread popularization of new energy vehicles.
In addition to technological progress, GAC Group is also at the forefront of accelerating intelligence in the automotive field. The company is investing heavily in the research and development of autonomous driving technology and launching new energy vehicle products equipped with high-level autonomous driving functions. The vehicles demonstrated outstanding performance and reliability in real-world road testing, further solidifying GAC Group’s reputation as an innovation leader.
Pushing Chinese new energy vehicles into overseas markets is not just a business strategy; This is an opportunity for win-win cooperation for all countries. By establishing production facilities in Brazil and Europe, GAC Group can contribute to the local automotive industry and promote cooperation that benefits the company and host countries. This partnership is particularly important in the context of global efforts to achieve dual carbon targets, as the adoption of electric vehicles plays a vital role in reducing greenhouse gas emissions and promoting sustainable development.
To sum up, GAC Group plans to localize production in South America and Europe, marking an important step in the global expansion of China’s new energy vehicles. With its technological prowess and commitment to cost-effective solutions, GAC Group is poised to make a meaningful impact in the international market. The establishment of the assembly plant will not only enhance the company’s competitiveness, but will also contribute to the transformation of the local automotive industry and align with global sustainability goals. As GAC Group continues to navigate challenges posed by tariffs and market dynamics, its aggressive internationalization strategy highlights the potential for collaboration and shared success in the changing automotive industry landscape.
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Post time: Oct-16-2024