GAC Group plans to bring new strategic investors for GAC AION

Shanghai (Gasgoo)- GAC Group intends to introduce strategic investors for its wholly-owned NEV-dedicated subsidiary GAC AION, the Guangzhou-based automaker announced on August 30.

According to the announcement, GAC Group will boost the increase of registered capital and shares for GAC AION by restructuring and integrating its NEV-related R&D capability, businesses, and assets. Through promoting the mixed ownership reform for GAC AION, GAC Group expects to improve capital strength, optimize management structure, build a market-driven incentive mechanism, and enhance the ability of independent operation for its NEV business.

AION V; photo credit: GAC AION

The aforementioned plan is still on the drawing board, said GAC Group. The company has not signed any legally binding agreements for the matter. 

After introducing new investors, GAC Group will still be the majority shareholder of GAC AION. In the future, GAC AION will positively seek appropriate time to go public and build an independent capital platform and a market-driven incentive mechanism to support its sustainable development.

Founded in 2017 and previously named GAC New Energy Automobile Co.,Ltd., GAC AION was known as a standalone NEV brand for the first time at the Auto Guangzhou 2020. It currently has four vehicle models for sale, namely, the AION S, AION LX, AION V, and AION Y.

For the first seven months of this year, GAC AION's new vehicle sales surged 110.3% year on year to 53,541 units, 10,528 units were sold in July. The NEV maker also received 16,000 new car orders last month.

GAC AION has made sustained efforts to develop cutting-edge battery and EV charging technologies. On August 30, it launched a super-fast charging battery technology that boasts 6 charging multipliers assisted by the A480 supercharger, which made its world's debut at the same time. Unveiled at the GAC Tech Day in April, its in-house developed sponge-like silicon anode battery technology purportedly can offer up to 1,000-km range of an AION LX.