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China’s GAC is betting big on its entry into Brazil with the development of a new flex-fuel hybrid engine in Brazil. As part of a total investment of US$1 billion (approximately R$5,99 billion), the automotive giant announced that it will allocate R$120 million to promote innovative technologies through a partnership with Brazilian universities. The goal? To establish itself as a reference in the market and offer more sustainable solutions adapted to local consumers.
The announcement, made by Wei Haigang, president of GAC International, includes collaborations with the Federal University of Santa Catarina (UFSC), Federal University of Santa Maria (UFSM) and State University of Campinas (Unicamp). Together, these institutions will work on the development of the new flex-fuel hybrid engine in Brazil, a crucial step in China’s GAC strategy to expand its operations in the country.
Factory and dealer network on the way
Although the location of its future factory for the new engine has not yet been defined, GAC plans to begin assembling imported vehicles under the CKD regime before establishing a full production line in Brazil. The process is expected to be completed within the next five years. In the meantime, the brand has already confirmed the creation of an initial network of 20 dealerships, located in capitals such as São Paulo, Brasília and Rio de Janeiro. By 2030, this number should jump for 50 points of sale.
The presence of the Chinese company GAC in Brazil also includes a robust portfolio of launches. The first models to arrive will be hybrid, electric and combustion, with an average of five new vehicles per year. Among the highlights is the Aion Y Plus, an electric SUV with an impressive range of 610 km, and the GS3 Emzoom, a compact with a turbo engine.
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Besides the new engine, why invest in Brazil?
Brazil represents a strategic opportunity for China’s GAC, especially due to the growing interest in sustainable technologies and the market for flex-fuel hybrid engines. Although the company is arriving after competitors such as BYD and GWM, the promise of local production and the focus on research and development set the brand apart. The goal is clear: to position itself as the first Chinese automaker to offer a complete production line in the country, reinforced by the creation of the new flex-fuel hybrid engine in Brazil.
The Brazilian market is seen as a fertile field for the implementation of new technologies, especially in flexible engines that allow adaptation to ethanol, a solution aligned with the local energy matrix. The partnership with Brazilian universities reflects the company's commitment to fostering innovation and generating a positive impact on the market.
The future of GAC in Brazil
China's GAC is determined to become a major player in the country, even as it faces challenges such as defining its brand name and choosing a location for its factory. With models already spotted on Brazilian streets and operations set to begin in early 2024, the company appears to be well-positioned to compete with rivals and attract Brazilian consumers.
With the launch of the new flex hybrid engine in Brazil, GAC not only signals its intention to compete, but also to lead the tecnologic innovation in the automotive sector. For the consumer, this means more sustainable and affordable options in the coming years, in a market that is only set to grow.
