On August 11, GAC Group announced its plan to establish an Electric Drive Technology Company in order to achieve industrialization of self-owned IDU electric drive systems and GMC hybrid electromechanical coupling systems. The project’s total investment is RMB 20 billion.

GAC Group, GAC Motor Co., Ltd., and GAC Aion New Energy Vehicle Co., Ltd. each has a shareholding ratio of 23%, 26%, and 51%, respectively, in the company. The production line is planned to be completed in 2025 and is anticipated to produce 400,000 sets of IDU electric drive system assemblies and 100,000 sets of motors and electronic controls for GMC hybrid electromechanical coupling systems annually.

The establishment of the Electric Drive Technology Company will enable GAC Group to take control of the core electric drive technologies and achieve self-production of some electric drives. In the future, in terms of electric drive, GAC Group will adopt “three methods simultaneously”, i.e., self-research and self-production, cooperative production and joint ventures, and outsourcing. This will ensure a stable supply chain, reduce the procurement cost of core components, enhance and expand the Group's new energy vehicle business, and further enhance profitability.