GAC Group increases the size of intelligent networking Independent brand overtaking in curves

In 2021, the global auto industry continued to be affected by multiple unfavorable factors, and GAC Group experienced a five-month year-on-year decline in production and sales in June-October 2021, and recently production and sales have gradually improved. Recently, GAC Group summarized the completion of operations in 2021, and expects to achieve automobile production and sales of about 2.098 million units and 2.113 million units in 2021, respectively, an increase of about 3.1% and 3.4% year-on-year.

As early as March 2021, Zeng Qinghong, chairman of GAC Group, said that GAC Group will strive to challenge the goal of 10% year-on-year increase in automobile sales in 2021. According to GAC Group's expected sales volume for the whole year of 2021, although it increased slightly year-on-year, it has not yet reached the challenge target. In contrast to other financial data, GAC Group expects that the gross industrial output value, Guangzhou's local output value, and total profits and taxes will rise in 2021, reaching the annual challenge target.

Focusing on the "double carbon target" and low-carbon travel and other new hot words in the industry, GAC Group focused on releasing the "GLASS Green Net Plan" in 2021, and put forward specific plan targets at the group level and its two independent brands. At the same time, GAC Group released a series of new technologies around the plan, including power battery related technologies, upgraded ADiGO intelligent driving system, green engine technology and so on.

Entering 2022, GAC Group proposes to continue to make efforts in the field of intelligent and connected new energy vehicles, and fully challenge the goal of 15% year-on-year increase in automobile production and sales in 2022.

The rise of independent brands

Although the automotive industry continues to be disturbed by chip shortages, supply chain instability, and rising raw material prices in 2021, the overall performance of independent brands is good. According to the data of the Association, the market share of self-owned brand passenger cars increased to 46.3% continuously from September to November 2021.

Riding the wave of new energy vehicles, independent brands have become a new growth pole for car companies. According to the plan of GAC Group, GAC Group will achieve carbon neutrality of the whole life cycle of its products by 2050, with the sales of self-owned brand new energy vehicles accounting for 50% in 2025 and the sales of new energy vehicles accounting for 50% of the group in 2030.

For GAC AE, which takes "EV+ICV" as the path, continuing to develop new energy vehicles has become the focus of GAC Group. In 2023, GAC Aeon will build GAC's first zero-carbon plant, and plans to accelerate mixed reform and choose the opportunity to go public. At present, GAC Aeon has obtained more than 10 billion yuan of financing from GAC Group and GAC Passenger Vehicles.

In terms of sales, from July to November 2021, GAC Aeon's production and sales exceeded 10,000 for five consecutive months, and the cumulative sales volume repeatedly exceeded 100% year-on-year, becoming an important force driving the year-on-year sales growth of GAC Group in 2021. In terms of the model market, GAC Aeon passed the AION in 2021. S? Plus enters the C-end market and opens up the women's market with the newly launched AION Y, while embarking on a high-end car series.

In addition, GAC Aeon opened the "direct operation + distribution" dual-track model, turned to online APP, and realized a new marketing model of "one price, low inventory, and high turnover". At the same time, GAC Aeon has continuously strengthened its exploration of intelligent and connected vehicles, including self-developed battery trial production line, jointly released Apollo Moon AION LX front-loading mass production unmanned vehicles with Baidu, and researched hydrogen fuel cell vehicles.

At the same time, GAC Aeon continued to feed back GAC Toyota and GAC Honda. With the output of GAC AION S models, GAC Toyota released the iA5 model and GAC Honda released the EA6 model, driving the development of pure electric cars of the two Japanese joint venture brands under the GAC Group.

For GAC Trumpchi, which adopts the path of "ICV+PHEV/HEV", the transformation of fuel products to hybrid products has become a new goal, that is, to achieve hybridization of all models in 2025 and 60% of hybrid sales in 2030.

In 2021, GAC Trumpchi launched models including Shadow Leopard and the second-generation GS8. According to the latest GAC Group Production and Sales Express, GAC Trumpchi sold 292,000 vehicles from January to November 2021, up about 11.33% year-on-year.

At the April 2021 Investor Conference, Zeng Qinghong disclosed the development plan of GAC Trumpchi: GAC Trumpchi will formulate a "2+7+X" product strategy, launch 7 models based on two platforms, and quickly launch small modifications according to demand. Based on the "double carbon target", the next development of GAC Trumpchi is "hybridization + intelligence".

Enhanced intrinsic drive of the technology

At present, the development of new energy vehicles is increasingly paying attention, and the market demand for new energy vehicles lies more in technology. Focus on the new technologies released by GAC Group in 2021, one of which is the power battery-related technology, including magazine batteries, super-double-speed batteries, sponge silicon anode batteries and A480 super charging piles, etc., all of which are landed in GAC Aian; the other is the related technologies of intelligent networking, including ADiGO 4.0 intelligent driving interconnection ecosystem, etc. The intelligent driving system has been installed in GAC Aion Y, GAC Trumpchi Shadow Leopard and other models.

In addition, the GAC Research Institute has also released a number of technologies for low-carbon travel. One is the Green Drive technology for hybrids. Green Engine Technology contains two sets of dual motor hybrid systems, one is that the 2.0TM engine independently developed by GAC is matched with toyota's hybrid dual engine power system THS, and the other is the 2.0ATK engine with GMC electromechanical coupling system independently developed by GAC.

Based on the hybrid system, GAC Trumpchi released the second-generation GS8 dual engine series at the end of 2021, becoming the first independent brand in China equipped with Toyota's hybrid dual engine power system THS. At the same time, GAC Group has also independently developed the GMC electromechanical coupling system, and has begun to launch a hybrid model equipped with the GMC electromechanical coupling system and a 2.0ATK engine, and to study carbon reduction models including hydrogen power.

The second is the Xingling Electrical and Electronic Architecture. The biggest difference between "Xingling" and other electronic and electrical architectures is the integration of cloud vehicles. At the same time, in terms of computing power, the "Star Spirit" has increased by 50 times compared with the previous generation. At present, the "Star Spirit" is still in the domain control stage.

In recent years, various new energy vehicle companies have successively launched their own electronic and electrical architectures, which have played an important role in product strength and economic benefits. "Xingling" will play a role in greatly enhancing the product strength of subsequent GAC Aean products, GAC Trumpchi products, and products exported to joint venture brands.