Gasgoo.com - The Guangzhou Automobile Group has recently released its sales performance report for the first half of the year, according to a China Business News report appearing today. The manufacturer has benefited greatly from the strong performance of its Trumpchi own brand.
According to the report, GAC Group's total revenue for the first half of the year was 10.76 billion RMB ($1.75b); the figure represents year-on-year growth of 30.55 percent. GAC earned a total net profit of 1.73 billion RMB ($280.07m). The manufacturer's average stock price was 0.27 RMB ($0.0438) per share, 41.61 percent than the stock price a year ago.
GAC Group's automobile production and sales volumes for the first half of 2014 were 581,100 units and 503,700 units, respectively. Growth rates for the two figures were both over ten percent higher than the industry average. GAC's passenger automobile division in particular performed very well, with a total of 571,500 passenger automobiles being manufactured and 494,200 sold in the first half of the year. The manufacturer's market share has grown 0.4 percent from the first half of 2013 to the first half of this year.
A representative from GAC boasted that, although outlooks for the own brand market as a whole have been very poor, GAC's Trumpchi brand has still managed to achieve year-on-year growth of 51 percent. Over 50,000 Trumpchi vehicles have been sold over the first six months of the year. A lot of this has been due to GAC's active support of the Trumpchi brand. One example is GAC Group's decision to invest 101 million RMB ($16.39m) in its passenger automobile division in order to boost research and development for new energy vehicles. GAC has also approved its passenger automobile division to invest 2.61 billion RMB ($422.95m) in order to expand its annual passenger automobile production capacity by an extra 150,000 units.
Traditionally affiliated with Japanese manufacturers, GAC is also working to expand its partnerships with other companies in the industry. On the heels of its partnership with Fiat-Chrysler, GAC and BYD have agreed to cooperate in producing new energy-powered buses. By diversifying its partnerships, GAC has helped cut its risk significantly.