GAC’s Ambitious Plans for the Australian Market
Chinese car brand GAC, which stands for Guangzhou Automobile Group, has set its sights on becoming one of the top 10 best-selling car brands in Australia within a remarkably short timeframe. Initially, the company aimed to achieve this goal in five years, but it now believes it can reach that milestone even sooner.
GAC is not only focused on increasing its sales figures but also on expanding its dealership network from 30 to 100 within the same period. This rapid expansion strategy was highlighted during the launch of its new Aion UT electric hatchback. According to Kevin Shu, the local CEO, GAC could potentially enter the top 10 list in as little as one or two years earlier than previously planned.
“Within five years, with 10 models and more than 100 dealer network together, we can enter the top 10… maybe one year or two years earlier to achieve this target,” said Shu. “So GAC in the Australian market is not only [here] for one year, one model. We focus on long-term conquering this market.”
If GAC succeeds in its ambitions, it will join an exclusive group of Chinese car manufacturers that have already made their mark in the Australian market. BYD, for example, entered the top 10 just three years after its initial arrival in 2022. MG achieved the same feat in five years, albeit in a less competitive market.
Other Chinese car brands regularly featured in the top 10 include GWM and Chery. In its home market, GAC is already among the top 10 best-selling brands, with over 28 million cars sold worldwide.
To compete with established brands, GAC plans to leverage its reputation for quality, maintain a stable parts supply through its large Melbourne warehouse, and offer vehicles across different segments. The company’s strategy involves integrating into the Australian market and contributing to the nation alongside its partners, customers, and dealers.
“We launched in Australia for Australia. We plan to integrate into Australia, survive… and contribute to the nation along with our partners, customers and dealership together,” said Shu.
GAC has already launched three models in Australia: M8, Aion V, and Emzoom. These models are key to its market expansion strategy. The company envisions a customer journey where young graduates, who start with the Emzoom, eventually move up to the Aion V and then to the M8 as their families grow.
“And then, five years later, they have two kids [and move] from Aion V to M8. So, this is our logic to launch our models in this market,” said Shu.
Andrew Ratajczak, Director of Aftersales for GAC in Australia, emphasized that parts supply would not be an issue. “We have been able to get the parts supply,” he told media. “We have a very solid strategy and idea of what we want for our customers for the aftersales business.”
When asked about potential expansion beyond major cities, Ratajczak noted that the company is working on it. “We’d like to be able to say we can cover 96 per cent of the parts for each model we have. Obviously, it’s going to take time to do that, right? We’ve probably got about 12-24 months to get to where we need to be.”
“We are looking to stretch outside of the metro. It’s just a matter of getting that balance and sign off on those potential partners to stretch out there. They need time to prepare. Moving into the next year, we’ll be looking at some other models that are going to be more suitable for that rural demographic.”
