Manufacturing News

GAC breaks ground on 1.6 billion yuan assembly plant in Urumqi

Guangzhou Automobile Group Co. began construction on an assembly plant in Urumqi, the capital of northwest China's Xinjiang region, as part of an expansion into the country¡¯s vast interior.

The factory initially will produce Trumpchi-brand crossovers and plug-in hybrids, with annual volume targeted at 50,000 vehicles, according to GAC.

Under a second phase, annual production capacity will double. The facility will cost approximately 1.6 billion yuan ($244 million).

GAC did not disclose when the factory will begin production.

State-owned GAC produces Trumpchi sedans and crossovers in the south China city of Guangzhou, where it is headquartered.

The company also is converting a microvan subsidiary in the east China city of Taizhou into an assembly plant for Trumpchi cars.

In the first seven months, Trumpchi brand sales in China soared 143 percent year on year to 190,152 vehicles, reflecting strong demand for crossovers.

GAC also oversees joint ventures with Toyota, Honda, Mitsubishi and Fiat Chrysler.

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