Guangzhou-based GAC (Guangzhou automobile company) is planning major renovations of its assembly plant in Hangzhou in a push to expand production capacity following substantial sales growth.
The China Daily reports that the upgrade comes after the company acquired GAC Gonow in April-a joint venture between Guangzhou Automobile Group Co and Zhejiang Gonow Holdings Group Co.
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“The facilities in Hangzhou will help expand production capacity and boost our position in the fast-growing eastern China market, as we are gearing up to meet the growing domestic demand,” said GAC Motor General Manager Yu Jun.
GAC Motor sold 219,000 units of its Trumpchi car brand in the first eight months of this year, a 151% increase according to the report.
“After years of effort in research and development, the market demand for high-end homegrown vehicles has surpassed current production capacity,” Yu said.
Yu told the China Daily that GAC Motor’s Guangzhou facilities currently produce 400,000 vehicles annually, while its manufacturing line in the Xinjiang Uygur autonomous region, currently under construction, is designed to produce 100,000 units annually.
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By GlobalData“Establishment of the Xinjiang facility will allow us to tap the far northwestern China market, while the Hangzhou project will help boost our presence in eastern China,” Yu said.
The report said that GAC Motorwill invest 3.75 billion yuan ($562.1 million) in the renovation of the Hangzhou project, with a designed annual production capacity of 200,000 vehicles, according to Yu.
The Hangzhou facilities will go into operation by October next year, while construction of its new Xinjiang assembly line, which will focus on production of medium and high-end SUVs and new-energy vehicles, began in August.
