China's GAC: Toyota, Honda ventures plan to sell 1 million cars a year by 2025

GAC's joint ventures with Toyota Motor Corp and Honda Motor Co Ltd are aiming for a big boost in annual China sales to a million vehicles each by 2025, a recording of a GAC earnings call reviewed by Reuters showed.

File photo used for representational purpose (Bloomberg)
File photo used for representational purpose

For its venture with Toyota, that would represent a jump of 47% from 2019 levels while for the venture with Honda that would be a 30% surge. Vehicles made by the JVs are mostly sold under the Japanese brands.

The state-owned automaker will also aim to sell 1 million units annually under its own brand by 2025, Feng Xingya, GAC's general manager told investors and analysts on the call on Wednesday which was not open to media.

Also check these Cars

Find more Cars
Toyota Innova Hycross (HT Auto photo)
₹ 18.30 - 28.97 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Toyota Innova Crysta (HT Auto photo)
₹ 19.99 - 26.05 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Toyota Glanza (HT Auto photo)
₹ 7.18 - 9.45 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Toyota Belta (HT Auto photo)
₹ 10 Lakhs *Expected Price
View Details
Toyota Camry (HT Auto photo)
₹ 39.41 - 41.20 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Toyota Fortuner (HT Auto photo)
₹ 33.43 - 51.44 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Also Read : China's auto industry coaxes drivers back to showrooms post coronavirus lockdown

It was not clear when the plans were formed. For the current year, it expects industry-wide China auto sales to tumble 10% due to the impact of coronavirus outbreak although it expects its sales, which include sales of its JV partners, to climb 3%.

The long-term plans come as the state-owned automaker expands manufacturing capacity.

GAC Honda currently has annual production capacity of 770,000 vehicles while GAC Toyota is building new electric vehicle plants which will take its capacity to around 1 million vehicles per year. Those capacity figures, however, exclude potential overtime shifts.

In 2019, when GAC Honda recorded a 4% rise in China sales to 770,884 cars, its capacity utilisation rate was around 119%. GAC Toyota, which saw an 18% jump in China sales to 682,008 cars was operating at 140% of annual production capacity.

Also Read : Toyota to make face masks in US to aid coronavirus battle

"We can reach higher production by arranging extra shifts at current plants...Capacity will not be a big problem," GAC Chairman Zeng Qinghong told the call.

Toyota and Honda declined to comment on the sales plans. GAC did not respond to a request for comment.

Sales of GAC-branded cars tumbled 28% to 384,578 units in 2019. For the year, GAC's revenue tumbled 17.5% while net profit attributable to shareholders dropped 39%, according to a company filing.

Asked about its loss making venture with FCA, GAC executives said the automaker will explore more opportunities to export China-made vehicles to Southeast Asian countries.

To meet government quotas for sales of new-energy vehicles, Zeng said the venture with FCA will also sell some models under the GAC brand, a strategy it is also employing at its joint ventures with Toyota and Honda.

First Published Date: 02 Apr 2020, 12:36 PM IST
Shopping Bag Shop Now
73% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 239 Rs. 899
64% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 699 Rs. 1,939
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.