GAC launches electric drive subsidiary

The Chinese car company GAC Group is investing 2.16 billion yuan (312 million euros) in setting up a subsidiary for the production of electric drive systems. The new subsidiary plans to build production lines with an annual capacity of 400,000 integrated electric drive systems by 2025.

Officially, the electric drive system subsidiary is a joint venture between GAC Group (23 per cent), GAC Motor (26 per cent) and GAC Aion (51 per cent). The latter is the NEV subsidiary that builds and sells the battery-electric cars of the Aion brand – some of which have impressive technical specifications. It is not clear from the reports what the key data of the future drive systems will be.

GAC Aion will probably also be the main buyer of the 400,000 Integrated Drive Units. According to the announcement, the new subsidiary will also build 100,000 drive units with an electromechanical clutch system. These e-drives are likely to be used in hybrid vehicles of other GAC brands, such as the Trumpchi GS8 HEV.

GAC Aion managed to sell 125,284 battery electric cars in the current year to the end of July. The establishment of its own electric drive system unit is intended to lay the “foundation for GAC Aion’s continued high growth”, according to Chinese reports.


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