Shanghai (Gasgoo)- GAC Group announced on August 11 it would invest a total of 2.16 billion yuan ($320.218 million) in building an electric drive technology subsidiary.

The new subsidiary will be held as to 23%, 26%, and 51% by GAC Group, GAC Motor, and GAC AION, respectively. It will complete construction of production lines by 2025, with an annual production capacity of 400,000 sets of IDU (Integrated Drive Unit) electric drive assembly and 100,000 sets of the GMC electromechanical coupling system's electric motors and electric drive units.

Trumpchi GS8 HEV; photo credit: GAC Group

GAC Group said the new company would help it grasp core technologies of electric drive system and realize the in-house production of some electric drive systems.

In the future, the group will adopt the three-pronged approach, which combines the in-house R&D and production, the production by joint ventures, and the procurement from suppliers together to stabilize the supply of electric drive systems and lower the purchase costs of this core component.

GAC Group said it had already built an R&D system for electric drive systems, which embraces talents from each segment of this field and features the capability of developing such cutting-edge technical products as high-voltage electric drive unit, high-performance electric motor, multi-mode decelerator, and integrated electric drive system, and customizing electric drive products based on a vehicle's unique power performance.

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