The Chinese automotive company GAC Group is investing 2.16 billion yuan (312 million euros) to establish 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 systems subsidiary is a joint venture between GAC Group (23%), GAC Motor (26%) and GAC Aion (51%). The latter is a subsidiary of NEV, which manufactures and markets Aion-branded battery electric vehicles, some of which have impressive specifications. It is not clear from the reports what the key data of future drive systems will be.
GAC Aion is also likely to be a major buyer of 400,000 integrated drives. According to the announcement, the new subsidiary will also build 100,000 drives with an electromechanical clutch system. These electronic actuators are likely to be used in hybrid vehicles from other GAC brands such as the Trumpchi GS8 HEV.
GAC Aion managed to sell 125,284 battery electric vehicles this year by the end of July. According to Chinese reports, the creation of its own electric drive system unit is intended to lay "the basis for the continued high growth of GAC Aion".