With the star product GS5 sales keeps rising and GA3 launching market, GAC passenger car has grown as a cutting-edge strength of GAC Group.
According to Song WU, GAC Group allots 65- 70 thousand sales goal for GAC passenger car, and has no requirement for profit realization as long as no more than 300 million Yuan lose. No matter from sales or profit perspectives, GAC passenger car has achieved its goal perfectly.
Song WU told Tencent Auto that “GS5 sales will exceed 60 thousand this year. Even 80 thousand sales is possible if no accident happening.”
GAC passenger car has turn lose to profit from Jan this year. According to plan, 5,000 sales per month is the breakeven point for GAC. Song Wu anticipates that sales of Oct will exceed 8.6 thousand, includes GA3 over 2,000 and GA4 more than 1,000. GS5 is till the star product.
However, 80 thousand annual sales is not a satisfied result for Song WU. He has stressed some times that goal for GAC passenger car this year is “keep 8, work for 10.” “If we want to get 100 thousand sales, Trumpchi GA3 market performance is one of the key factors.” Based on the situation at the moment, GA3 grows stable and fast, it is very possible for 3,000 sales in Dec.
However, Song WU said that production capacity limitation disturbs him. “It is not easy for GA3 running for higher sales volume, which will influence 100 thousand sales goal. We are trying to produce even on weekend to have more production.”
Song Wu told Tencent Auto that GAC passenger car considered about 120 thousand sales and work for 150 thousand sales at first. However, according to GAC Group plan, the largest production capacity is only 100 thousand. GAC Group Director of Board has approved an agreement for 2.85 billion Yuan investment for GAC passenger car business unit, which includes 1.15 billion Yuan research fee and 1.7 billion Yuan production capacity enlarge fee. “The second phrase production capacity enlarge project is building now, and the largest production capacity shall reach 120- 130 thousand next year.” Song WU so expressed.
What’s more, Song Wu said that if GAC passenger car has achieve 80 thousand sales this year, the company will consider about building a new plant. It will solve the limited production capacity of GAC Group.
GAC passenger car will finish a new plant with 200 thousand production capacity in 2015. GAC passenger car will have 200- 300 thousand production capacity, which will help GAC passenger car will have a better future.