Manufacturing News

GAC plans 1.6 billion yuan assembly plant in Xinjiang

Guangzhou Automobile Group Co. plans to construct a plant to assemble its Trumpchi-brand passenger vehicles in northwest China's Xinjiang region, enabling the company to expand its presence in China's vast interior.

The factory, to be built in Xinjiang's capital of Urumqi, will produce up to 50,000 vehicles a year in the first phase. Production capacity will double in the second phase, according to GAC.

Total investment in the plant is estimated to be 1.6 billion yuan ($243.9 million).

GAC did not disclose when the plant will start production, since the central government has not yet approved the project.

The state-owned automaker builds Trumpchi vehicles in the south China city of Guangzhou, where the company is headquartered.

The Guangzhou plant can produce up to 200,000 vehicles a year.

In the first four months, Trumpchi sales surged 137 percent year on year to 128,574 vehicles on strong demand for its two crossover models, the GS4 and GS5.

To ease the production bottleneck that limited Trumpchi production, GAC has converted its joint venture with private domestic automaker Gonow Automobile Co. into a wholly owned subsidiary.

The subsidiary, in the east China city of Taizhou, can build as many as 60,000 Trumpchi cars a year.

GAC, which has joint ventures with Toyota, Honda, Mitsubishi and Fiat Chrysler, has said it hopes to launch U.S. sales in the next few years.

In 2017, company plans to exhibit its vehicles at Detroit auto show after a one-year hiatus.

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