Kicking Off the Year with Full Force? GAC Must Deliver Results

High-quality development is the top priority for state-owned enterprises in the new era and the essential path for GAC Group to break through challenges and advance toward a new future.

After a full year of deep adjustment in 2025, the entire Guangzhou Automobile Group is looking forward to the results of the reform. Standing at the starting point of the 2026 auto market, when Chairman Feng Xingya gave instructions at the group's high-quality development conference this year, the desire for a new beginning is reaching its peak.

Last year, the entire group's performance was glaringly in front of us. While overall sales declined, the loss in profits was like a fish bone stuck in our throats. Compared to other Chinese automakers, the fiercely competitive environment left everyone physically and mentally exhausted, but on the path to development, each had its own methodology.

To break through in such an environment, having determination alone is clearly not enough. Facing the increasingly severe reality this year, GAC can only find its root problems from the source.

Constrained by the original system framework, whether it's the joint ventures or the independent business units, they once struggled to keep up with the pace of competitors due to the rapid market changes. Especially in the face of the booming new energy vehicle market, relying solely on Aion's experience in the industry tide was clearly not enough.

In the new year, Feng Xingya once again emphasized that the group needs to advance three key tasks: "stabilizing joint ventures, strengthening independent brands, and expanding the ecosystem," aiming to systematically eliminate the undesirable elements accumulated during past development.

Meanwhile, the initiative of "starting work is like going to battle, and starting is like sprinting" sets a new development tone for GAC Group in 2026 with a firm attitude: do not dwell on the past, but go all out.

GAC Toyota, determined to return to its annual sales target of one million vehicles; GAC Honda, unwilling to continue losing its way in the electrification transition; Trumpchi, AION, and Hyper, opting for integration and a fresh start; and the newly launched Huawei Qiankun | Qijing—all share the same goal: to support the entire group’s genuine transformation through the “Panyu Initiative.”

01Reform First, to Safeguard the New Strategy

"2026 marks the first year of the '15th Five-Year Plan' and a pivotal year for the three-year 'Panyu Initiative,' bridging its past and future phases." Regarding GAC Group's development plans, it is widely understood externally just how crucial this year's successes or setbacks will be for the company.

If everything proceeds as planned, or yields results far exceeding expectations, GAC can always bury the disappointments of the past year in history. A rebound in sales coupled with a return to profitability would be the best reward for the new system. Conversely, not only would the "Panyu Action" fail to reach a satisfactory conclusion, but it would also indicate that GAC, as a whole, is unable to generate sustainable vitality in the face of dramatic market changes.

Currently, the entire industry is constantly pushing for stronger overseas expansion due to the rise of China's automotive industry. However, at Guangqi, since the company has always adhered to the development strategy of both joint ventures and independent brands, just like the deployment by Feng Xingya, all sectors of the group must not fall behind in this battle.

Last year, given the overall market environment, many companies had their own development limitations.

Similarly, the flaws embedded in the old system sometimes hindered Guangzhou Automotive's efforts to accelerate transformation. However, with the group establishing the long-term reform system "2+3+X," completing the key tasks of the first phase "laying solid foundations and building framework," the IPD product development system was gradually introduced, and the HaoBo Aion BU and Chuanqi BU were officially launched, initially achieving integrated research, production, sales, and supply chain operations for self-owned brands. Guangzhou Automotive's preparations are nearly complete.

Today, despite the auto market’s less-than-optimistic performance since the beginning of the year—enough to unsettle everyone in the industry and prompt reflections on how to move forward—perhaps it is precisely such changes that have given GAC a clearer glimpse into the future.

As GAC's biggest highlight last year, GAC Toyota has already opened up a promising situation for joint venture electrification with the bZ3X and laid the groundwork for future development through deep cooperation with Chinese technology. However, at this moment, as GAC places increasing emphasis on stabilizing its joint ventures, all of GAC Toyota's efforts have only opened a small window, and there is still a long way to go.

March 5 marks the pre-sale launch of the bZ7, GAC Toyota's second localized all-electric vehicle in China. Having received widespread acclaim since its debut, the company has decided to bring it to market at the start of the new year—a clear indication of the high hopes GAC Toyota has placed on this model.

As Chinese automakers grow increasingly confident, joint ventures are indeed finding life tougher. GAC Toyota surely understands its own predicament. Riding on the success of the bZ3X, the priority now is not just to breathe a sigh of relief but to capitalize on this momentum—especially since its sibling company, GAC Honda, is still struggling to pull itself out of the mire.

For the new stage of work, a statement from the group to the joint venture has left a deep impression: "Through localized adaptation and development, share R&D achievements." On the surface, it summarizes the experience of Guangzhou Toyota, but in fact, this is not only a suggestion from the group to the Guangzhou joint ventures, but also a mandatory requirement for the entire industry at present.

It’s hard to believe that GAC Honda, once a top-tier brand, has experienced years of declining sales—last year’s sales nearly dropped by a quarter—while GAC Toyota, meanwhile, has seized the opportunity to announce its ambition to return to an annual sales volume of one million units.

There is no doubt that with GAC Toyota leading the way and GAC Honda keeping its brand DNA while quickly following suit, GAC is bound to combine the experience accumulated over more than 20 years in the joint venture era with future development this year. If the Bonti 7 can once again open the door to the revival of joint ventures and gain a foothold in the pure electric sedan market, everything has the potential to warm up.

Over the past year, both joint ventures and domestic brands have been undergoing adjustments, all indicating that 2026 will be the first full year to test the results of Guangzhou Auto's reforms. Under the new plan, at the enterprise level, all the old order will be reorganized.

02Joint venture and independent, all members as key players

The development of joint ventures tends to be much more constrained due to the presence of foreign partners—a characteristic inherent to such companies. By today's standards, any change for the better is already a positive sign. However, Feng Xingya also stated that GAC will focus on its "three major battles" and continuously enhance the competitiveness of its independent brand system.

Since the establishment of GAC Trumpchi BU and Hyper Aion BU at the end of last year, there is naturally strong external anticipation regarding the future development of GAC’s independent brands.

Last year, to propel brand elevation, GAC Trumpchi launched its “Xiang Wang” vehicle series in March. Meanwhile, Hyper, having undergone a comprehensive executive reshuffle, sought to rejuvenate the entire brand with the HL as its key touchpoint. After its IPO attempt failed, Aion shifted its strategy from pure electric to a “pure electric + extended-range” development path, accelerating its pace significantly. However, it is evident that this fragmented, siloed approach to brand evolution has not yielded favorable results.

Looking back, in areas such as product definition, channel development, and marketing promotion—backed by the Group’s resources—GAC Trumpchi or AION each exhibited some degree of immaturity. Today, however, keeping pace with the market’s rapid evolution and ever-changing consumer trends, and to further fulfill the tasks assigned by the Group, GAC’s self-owned brands simply have no room for further trial and error.

Zhang Xiong took over the HaoBo Aion BU, along with Yang Long and Feng Yu appointed as vice presidents; Huang Jian took charge as the president of the Guangqi BU, with Li An and Wang Yu as his aides. In addition, GAC Group has officially entered the "Feng He era" (Feng Xingya + He Xianqing). In short, everything being done now aims to show the shadow of a qualitative transformation of GAC's self-owned brands.

Like GAC Toyota, GAC Group kicked off the year with full momentum, and the strategic thinking of its independent business unit during this period cannot be overlooked. First, AION unveiled a refreshed IP image and a new version of the i60; shortly thereafter, Hyper officially launched the A800, an all-new mid-to-high-end new energy sedan, into the market.

In recent days, the automotive industry has been very busy, with almost all leading car manufacturers choosing this period to launch their first wave of new products for the year. Ultimately, in the face of competitors' moves, every card that GAC Motor plays must stand up to scrutiny.

In the first month of the year, sales of the group’s brands, viewed from the group’s perspective, appear quite promising. However, how the Chinese automotive market will begin its 2026 opening is already clearly signaling a warning to GAC.

For GAC Trumpchi to truly leverage "Trumpchi Yearning" to reposition its brand image, it would be unwise to rely solely on outdated approaches when launching new models or to tie Huawei's technology to product premium pricing. Such moves are not only overly conventional but also lack any standout appeal. In the new strategy, any hollow or superficial marketing efforts are meaningless—even simply regaining consumer confidence in the mid-to-high-end MPV segment would be far more effective.

While it is understandable for AION to launch new models following the consecutive months of strong sales of the i60, the N60 and other upcoming models should not aim to replace existing models like the AION Y. Instead, they must genuinely strive to elevate the AION brand beyond its current perception as a ride-hailing vehicle—effectively positioning it as a representative “national quality vehicle.”

Soon, Qijing brand's first model will debut in mid-year. However, for another mid-to-high-end new energy brand, Hyper, this isn't a signal of a helpful ally arriving. From the recently launched A800 to the S600, whose details emerged late last year, Hyper urgently needs to rely on its own efforts to break free from its current lukewarm situation following the completion of its new organizational structure.

Both internally and externally, GAC will not have an easy time this year.

"Go all out in the opening year to create momentum for the start, and in the critical year achieve significant performance, using a successful first quarter to drive the goal of 'steady throughout the year' and 'winning throughout the year', fully promoting the high-quality development of Guangqi Group to a new level." Such declarations always sound exciting, but it's just the beginning. Guangqi needs a decisive and thorough victory to silence all external noise.