Guangzhou Automobile Group Co Ltd, one of China’s major carmakers, has long been known for its production and sales of car brands such as Toyota and Honda, since it established joint ventures with the Japanese car giants more than a decade ago. However, the Guangzhou-based carmaker started developing a homegrown car brand just eight years ago, at a time when the Chinese domestic market was almost entirely dominated by foreign brands.
Zeng Qinghong, president of GAC Group said:
“Cooperation with the Japanese carmakers in recent years has made a great contribution to launching innovative and homegrown brands. We needed to boost our market presence by launching a high-end homegrown brand.”
GAC Group’s homegrown vehicles, under the Trumpchi brand name, have become a hit in the Chinese domestic market, with annual sales increasing more than 80 percent year-on-year since it was established in 2008. In the past 10 months, GAC Motors sold more than 296,000 Trumpchi cars, a year-on-year rise of 126 percent, the company said.
The company has already secured orders for more than 18,000 units of the GS8 since sales of the seven-seat SUV were launched in late October. The GS8 which was launched in October is quickly becoming a huge success in China while GAC has serious plans to export the vehicle in US, Europe and Middle Eastern regions.
According to the company, sales of the GS8 will reach more than 100,000 units a year as it is very competitive both in quality and design in the Chinese domestic market, which is traditionally dominated by foreign brands. The company will make more effort to expand its capacity to meet growing domestic market demand for its high-end vehicles.
After the second assembly line of its Guangzhou facility was put into operation in July, GAC Motor became able to produce 400,000 cars annually. The company is also building an assembly line in the Xinjiang Uygur autonomous region and is upgrading another facility in Hangzhou, capital of Zhejiang province.