High-end GM8 taps into growing MPV sector

GAC Motor - a major Chinese automaker focusing on sales, research and manufacturing of homegrown vehicles - has unveiled ambitious plans to tap into the high-end multi-purpose vehicle market, which it considers to be very importance to its future business growth.

MPVs, also known as people carriers or minivans, offer spacious practical motoring that appeals to families. They differ from SUVs, which tend to have bodies more of an estate car shape and taller ride heights to offer more off-road capabilities.

"In the wake of the growing presence of our SUVs in the market, we are making efforts to develop high-end MPVs to meet demand," said Yu Jun, president of GAC Motor.

Yu made his remarks after GAC Motor unveiled its first large-scale MPV model, the GM8, during the Guangzhou International Automobile Exhibition, which will conclude on Nov 26 in Guangzhou, the capital of Guangdong province.

The GM8 - together with GAC Motor's other high-end varieties of SUV GS8, sedan model GA8 and intelligence connected concept car iSPACE and its fully electric model GE3 - have drawn the attention of domestic and overseas visitors in a huge way at the annual auto show.

"After the GS8 and GA8, which have already had success in the high-end SUV and sedan market, the GM8 is a high-end model for us to tap into the growing MPV market," Yu said.

The GM8 will challenge the traditional MPV market, which is already dominated by international brands, according to Yu.

Traditionally, MPVs developed by Chinese homegrown automakers are usually sold for less than 160,000 yuan ($24,148) and their joint-venture counterparts are between 220,000-250,000 yuan.

"There is a price gap between Chinese MPVs and overseas counterparts. As a result, we have produced high-end MPVs to meet the growing demand from Chinese consumers for better driving experience and service," Yu said.

The GM8 is being presold at between 180,000-270,000 yuan, a competitive price for consumers who have developed a taste for a higher quality MPV.

"We are aiming to develop the GM8 as a luxury variety designed and developed by Chinese automakers," he said.

According to Yu, target consumers for the GM8 will be those who have performed well in business and developed a demand for quality family life.

"Chinese homegrown cars already account for a more than 40 percent share of the domestic auto market. Chinese families have already developed a demand for second vehicles - and at the higher end that's where the big, luxury and safe GM8 comes in," said Yu.

GAC Motor, which was established in 2008, realized a year-on-year increase of 42.4 percent in sales to 420,000 vehicles in the first 10 months of 2017. The seven-seat GS8 has already become a hot SUV model in the domestic market, with sales topping 10,000 in October alone.

In January the company will also exhibit its high-end vehicles in the North American International Auto Show - one of the world's most prestigious auto fairs - in another sign of its growing presence in the global industry.