According to the official news of GAC Group, Feng Xingya, general manager of GAC Group, exchanged views on chip issues, new energy vehicle development, and internationalization in an interview on March 11.
In response to the problem of chip localization, Feng Xingya said that China produced and sold more than 27 million cars last year, accounting for one-third of the world. China’s demand for automotive-grade chips is particularly high, so it is even more necessary to localize the production of chips in China to ensure continuous production and operation. As a vehicle manufacturer, GAC Group should also pay attention to the development of the parts industry and make efforts for the healthy and sustainable development of the parts industry. On the one hand, it will buy more domestic chips and encourage chip companies to strengthen R&D and production. On the other hand, GAC Group will also increase investment in chip companies to help them develop better.
When talking about the development of new energy vehicles, Feng Xingya pointed out that new energy vehicles are still in the development stage, and there will be good development in the future, and their development prospects are very clear. China’s “New Energy Vehicle Industry Development Plan (2021-2035)” proposes that the penetration rate of new energy vehicles should reach 20% in 2025, but in 2022, China’s new energy vehicle penetration rate will exceed 20%, close to 26%. The goals for the next few years must also be achieved ahead of schedule. According to the estimates of third-party companies, it is estimated that by 2030, the overall sales of passenger vehicles in China will be about 28 million, of which new energy (including pure electric and plug-in hybrid) will account for nearly 70%.
Regarding the Indian market, Feng Xingya said that he is very optimistic about the Indian market and believes that the Indian market is one of the most potential markets. His previous visit to India gave him the impression that India is not a big oil-producing country, and there is pressure on the supply of oil and other fuels, so it is necessary to develop electric vehicles. In addition, India’s tax policy will vary depending on the size and performance parameters of the car. Therefore, GAC Group needs to develop products for the Indian market, and it will also need to produce locally in India in the future.
GAC Group’s car sales in February 2023 will be 161,219, a year-on-year increase of 12.38%; February car production will be 175,087 vehicles, a year-on-year increase of 15.25%.
