In the first three quarters of this year, Guangzhou's sedan production surged to the top nationwide, reaching 653,000 units. This milestone highlights the city's growing influence in the automotive sector and marks a new chapter for the Guangzhou automobile industry. The "Guangzhou-Japan Industry Investment Exchange Conference" held in Tokyo recently showcased the collaboration between Guangzhou Automobile Group (GAC) and Hino Motors, with plans to launch their joint venture in mid-2009. The Guangzhou Municipal Government sees this project as a key driver in establishing China's largest commercial vehicle production base.
Yesterday, the Guangzhou-Japan Trade and Economic Cooperation Group made a special trip to Tokyo to kick off the first batch of parts and components for the GAC Hino project. The project was officially approved by the National Development and Reform Commission on July 30, 2007. GAC and Hino each contributed 50% to form a new joint venture, GAC Hino, which is based in Cheong Tau. The partnership focuses on high-end commercial vehicles, aiming to fill a gap in the market and strengthen Guangzhou's position in the industry.
This initiative follows GAC’s previous investments in Guangzhou Honda, Guangzhou Toyota, and its own-brand passenger car projects. The GAC Hino project will significantly boost Guangzhou's production capacity and help address the lack of heavy truck options in the region. It also aims to reshape the commercial vehicle landscape in Guangdong Province.
According to officials from the Guangzhou Municipal Government, the city's commercial vehicle production lags behind its passenger car output. To bridge this gap, Guangzhou is actively seeking partnerships with global leaders to expand its commercial vehicle offerings and enhance the overall structure of its automotive industry.
The southern region's well-developed high-speed transportation network has created a massive demand for commercial vehicles such as trucks, tractors, and transport vehicles. This demand has pushed Guangzhou to accelerate its commercial vehicle development strategy.
GAC Group operates across multiple sectors, including passenger cars, commercial vehicles, parts, service trade, and auto insurance. Hino, known for its trucks, buses, and engines, currently exports 2,000 heavy trucks to China annually. Their collaboration is expected to bring a significant qualitative leap to Guangzhou's commercial vehicle industry.
Historically, Guangzhou was one of the first cities in China to produce light trucks. Yangcheng Automobile, the largest commercial vehicle company in Guangdong, was founded in 1958 and was among the first state-approved manufacturers. However, outdated technology and historical debt have limited its success in the domestic market. Today, Guangzhou's total truck production accounts for less than 1% of the national market.
Industry experts believe that the GAC Hino project will provide a strong boost to Guangzhou's commercial vehicle industry and meet the rising local demand. The first-ever GAC Hino components investment promotion event in Tokyo attracted nearly 100 Hino companies, highlighting the project's growing significance.
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