GAC Group to Invest 2.16B Yuan in Establishment of Electric Drive Tech Firm
On August 11, Chinese state-owned auto manufacturer GAC Group announced plans to set up a new entity tentatively named Electric Drive Technology Company for the industrialization of independent IDU electric drive systems and GMC hybrid electric coupling systems, with total project investment of 2.16 billion yuan ($320.7 million).
The new company is to be operated by GAC Group, GAC Motor, and GAC AION with an ownership proportion of 23%, 26% and 51% respectively. The production line, which is scheduled to be completed in 2025, will produce 400,000 sets of IDU electric drive system assemblies and 100,000 sets of motors and electric controls for GMC hybrid electric coupling system per year.
Its establishment will help GAC Group control the core technology of electric drives and realize self-production. In the field of electric drives, GAC Group will engage in self-research and self-production, joint venture production and outsourcing to ensure the stability of the supply chain, reduce the procurement cost of core components, help the group’s new energy vehicle business to strengthen and further enhance its profitability.
Both the pure electric and hybrid vehicle markets are developing rapidly. Electric drive systems, as the power source of new energy vehicles, are an indispensable core component. As the “heart” of an NEV, the electric drive system plays the role of “engine + ECU + transmission” in the fuel car, which directly affects the core performance of the power, economy, comfort and safety of the whole vehicle.
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NEVs require electric drive systems to achieve power output and control, regardless of the electrification technology path or battery type. Therefore, they will have a profound impact on the sustainable development of enterprises to grasp the core technology and continuously maintain the technical advancement of the whole vehicle product. This can be accomplished by achieving self-research and self-production of IDU electric drive system assembly and its core components and key core components of GMC hybrid electric coupling system.
GAC Group has established a complete electric drive R&D system with talent in all fields, and has the ability to develop advanced technologies such as high-voltage electric control, high-performance motors, multi-mode gearboxes and integrated electric drives, which can customize and develop electric drive products to match the performance of the whole vehicle, providing core competitiveness for its independent brands AION and Chuanqi.
