Chinese automotive giant GAC Group announced a $1 billion investment in Brazil over the next five years, representing a major step in boosting economic relations between the two nations. This announcement followed a fruitful meeting between Brazilian Vice President Geraldo Alckmin and GAC Group President Feng Xingya in Beijing on June 7.
Feng Xingya detailed GAC’s plan to establish factories, research and development centers, and spare parts warehouses in Brazil. This makes GAC the first Chinese manufacturer with a comprehensive R&D and production line to enter the Brazilian market, producing a range of vehicles, including gasoline, electric, full hybrid, and plug-in hybrid cars.
Vice President Alckmin’s visit to GAC’s facilities highlighted the advanced technology and quality of GAC’s automotive products, indicating a warm reception to the company’s expansion. This move underscores a deepening of economic and trade cooperation, with China betting on Brazil for mutual growth and benefits.
GAC’s strategy involves not only market entry but also the enhancement of Brazil’s value chain technology and R&D capabilities. Feng Xingya emphasized the company’s dedication to delivering high-tech, reliable vehicles to Brazilian consumers, marking a significant contribution to the local economy.
Ranking 165th on the 2023 Fortune Global 500 list, GAC Group stands as a major player in the global automotive industry, backed by decades of joint venture experience with Honda and Toyota. In 2023, GAC was the fifth-largest automobile manufacturer in China, producing and selling 2.52 million cars and generating $70 billion in revenue, with 6.47% reinvested into R&D. By 2030, GAC aims to surpass 4.75 million vehicles in production and sales, targeting a revenue of 1 trillion yuan (approximately $137 billion).
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