Chinese automaker GAC reports surging NEV sales in H1

GUANGZHOU -- Chinese automaker Guangzhou Automobile Group Co Ltd (GAC Group) reported a modest growth in vehicle sales but surging new-energy vehicle (NEV) sales in the first half of this year.

The GAC Group sold 236,000 passenger NEVs in the first six months, marking a yearly increase of 108.5 percent, the company said in its half-year report released on Friday.

It is compared with a 1.14-percent growth in the group's total vehicle sales of 1.16 million in the same period, dragged down by the lackluster sales of gasoline-powered cars and the company's slow global expansion.

Feng Xingya, general manager of GAC Group, said the sluggish market of gasoline-powered vehicles has weighed on the group's joint venture brands, which have struggled to keep up with the fast-growing NEV market.

China's NEV market has experienced rapid growth in recent years. In the first half of 2023, China's NEV sales surged 44.1 percent year on year to almost 3.75 million units, compared with a 9.8-percent rise in total automobile sales, according to the China Association of Automobile Manufacturers.

The country, which aims to peak its carbon dioxide emissions before 2030, has promised to encourage the use of NEVs in rural markets and improve related infrastructures.

Feng said more efforts and investments are now directed to the joint venture brands, including GAC Honda and GAC Toyota, to accelerate their electrification transition.