GAC Nisshin wants to build the largest domestic commercial vehicle production base
Recently, the Guangzhou Municipal Economic and Trade Bureau announced that the Hino commercial vehicle project in Conghua has received national approval and is set to begin construction this October. Once completed, the facility will become one of the largest commercial vehicle manufacturing bases in China, marking a significant milestone for the region's automotive industry.
According to insiders, Guangzhou Automobile Co., Ltd. plans to build a new 1,600-acre plant in the town center of Conghua, with phased development. The site will include main parts production facilities, a commercial vehicle R&D center, and supporting infrastructure such as laboratories, testing workshops, and product development areas. The project aims to enhance capabilities in body design, interior and exterior trim, as well as engine and chassis component development.
In mid-August, the collaboration made a major breakthrough when the National Development and Reform Commission officially approved the establishment of GAC Hino Motor Co., Ltd., a joint venture between Guangzhou Automobile Group and Hino Automobile Co., Ltd. The joint venture will operate for 30 years, signaling a long-term commitment from both companies.
As part of the plan, GAC Hino Motor Co., Ltd. will acquire assets from Guangzhou Guangzhou Motor Co., Ltd., a subsidiary of GAC Group, to produce its own branded vehicles. This move will also lead to the cancellation of Yangcheng Co., Ltd.'s production license. A new factory will be built in Conghua, where all products will be transferred to Guangqi Hino Chemical Plant.
The project is expected to attract a total investment of 3.1 billion yuan, with a registered capital of 1.5 billion yuan. Specifically, the restructuring of the Yangcheng Company’s construction project involves an additional 2.4 billion yuan, with both Guangzhou Automobile Group and Hino contributing 50% each.
In terms of market positioning, the Hino project by Guangzhou Automobile aims to target the mid- to high-end commercial vehicle segment. The joint venture will introduce Hino’s 700 series heavy trucks, general trucks, and their associated P11C and E13C engines. It will retain the annual production capacity of 30,000 light trucks under the Yangcheng brand while expanding the production of heavy trucks to 20,000 units per year, including 5,000 units supported by the Shenyang plant for bus models.
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