GAC AION’s factory runs at full capacity despite chip crunch

Shanghai (Gasgoo)- GAC AION, a new energy vehicle (NEV) subsidiary wholly-owned by GAC Group, currently has ample orders for vehicle models of its entire product lineup and its factory is running at full capacity, GAC Group revealed earlier this week via a platform built to answer investors’ questions.

Due to the impact of the surging coronavirus cases in Malaysia, the chip production of key suppliers like STMicroelectronics and NXP Semiconductors was interrupted, so that the chip supply for GAC Group is affected in the third quarter.

To ease the supply constraint, GAC Group has adopted many measures to minimize its car production loss, including building direct and continuous contact with chip suppliers to distribute resources for production, locally sourcing chips, and even developing alternative parts with suppliers, the company said.

AION Y; photo credit: GAC AION

GAC AION is working on a factory expansion project, aiming to double the plant's annual capacity to 200,000 vehicles in early 2022.

There are four models for sale under AION brands, namely, the AION S Plus, the AION Y, the AION V, and the AION LV. The deliveries of AION-branded vehicles reached 11,631 units in August, zooming up 115% compared to the previous year, said GAC AION. The NEV maker also announced the monthly order volume of AION family hit a record high to surpass 18,000 units.