GAC completes its technology puzzle as domestic brands collectively take the test.
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Author | Zhou Zhiyu
In November 2024, GAC Group moved its headquarters from Zhujiang New Town to Panyu Auto City, launching a three-year "Panyu Action" campaign. Chairman Feng Xingya said then that to make decisions, you must "hear the sound of gunfire."
In the following year and a half, GAC underwent its most intensive round of self-surgery since listing: splitting its R&D system, marketing integration, introducing IPD processes, competitive selection for executives, successive establishment of Haobo Aion BU and Trumpchi BU, and the independent Powertrain BU in March this year. Almost the entire chain from R&D, production, supply, to sales was dismantled and rebuilt.
The results of these reforms were showcased collectively on April 12. That evening, at the 2026 GAC Technology Day held at Panyu headquarters, five technologies were released at once, covering power, body structure, cabin, electronic and electrical architecture, and chips—a breadth rarely seen in a single tech day among Chinese automakers.
The essence of this Technology Day was a concentrated inspection of GAC's reform achievements over the past year and a half.
Wallstreetcn has learned that within this year GAC will also release intelligent chassis technology, battery upgrades, ultra-low temperature resistant batteries, and all-solid-state battery progress. This indicates the reform is far from finished—more cards will be placed on the table.
GAC spent one and a half years dismantling and rebuilding itself. The only remaining question: Is the speed of laying out its cards fast enough?
A Changing Track
GAC's hybrid R&D did not start late.
It formed a new energy power team in 2006, launched its first hybrid model in 2013, and in 2017 produced the in-house developed GMC 1.0. Power BU President Qi Hongzhong outlined almost 20 years of technical path on Technology Day, emphasizing that GAC is a "Chinese hybrid pioneer."
But the real turning point came in 2021.
2021 was a watershed for China’s plug-in hybrid market. BYD launched DM-i super hybrid in January, with over 200,000 cars sold in the year. Geely, Great Wall, Changan, Chery, etc., also released hybrid systems that year. By 2024, BYD is already on its fifth-generation DM, with plug-in hybrid products covering all price ranges from A-class sedans to C-class SUVs. The proportion of plug-in/extended-range vehicles in new energy cars is rising rapidly, reaching almost half in some months.
During this key window, GAC’s tech path leaned more toward pure electric. The Aion brand topped the monthly sales chart in 2022 among new forces. In plug-in hybrids, it took until August 2025 to launch Xingyuan Extended Range, finally plugging the gap. The full plug-in hybrid tech brand "Xingyuan PHV" waited for this night of Technology Day.
In terms of parameters, Xingyuan PHV GMC 3.0 transmission comes in Thunder and Gale versions. The Thunder version, paired with P4 rear electric drive, reaches total wheel torque of 10,000N·m, giving mid-to-large SUVs 0-100 km/s acceleration in the 4-second range; the Gale version weighs just 98.5kg, among the very few dual-motor hybrid transmissions under 100kg, with WLTC efficiency at 93% and electric control efficiency at 99.2%.
For energy consumption, official data shows 2-ton models have “3-liter” per 100km fuel consumption, and A-class sedans can reach “2-liter.”
But GAC did not simply position this as a catch-up product, instead attempting differentiation—"Suitable for both city and wild." Including four-wheel vector control, 70% (claimed) climbing capability, single wheel escape torque of 5,000N·m, and 35% improved passability.
One of the first models equipped is Trumpchi’s new hard-core SUV. This is GAC’s first entry into this segment, targeting the current hot domestic hard-core SUV camp.
While filling the plug-in hybrid gap, GAC also tries to open up space via another path.
Also released was the "Xingyuan Super Dual Engine" (HEV+), equipped with a 5.4 kWh battery, discharge power of 150kW, supports pure electric drive at low speeds (over 17km) and enables air conditioning, multimedia, sentinel mode, and full vehicle OTA with the engine off. Qi Hongzhong defined it as "Fuel hybrid entering the era of smart devices from that of feature phones."
This judgment is backed by changes in market structure.
The industry expects that 2025 will be a watershed for plug-in/extended range in new energy market share, while competition in HEVs is heating up. From 2026, new energy purchase tax incentives enter a phase-out. HEV models, unaffected by the new purchase tax policy, usher in a new window.
Meanwhile, traditional fuel and hybrid models remain at relatively low intelligent configuration levels, with large-scale user demand yet to be met.
Xingyuan Super Dual Engine aims to fill this gap, providing users with EV-like smart experience without changing the power form.
Indeed, GAC’s push into the plug-in hybrid track is somewhat late, but as it makes up for lost time, it is also seeking to define a market space not yet fully developed.If these two paths succeed, it will depend on subsequent products’ market performance.
After Dismantling the Research Institute
Zhu Taiping prepared psychologically before going on stage.
As the new head of the intelligent cabin product line, he brought a team still being built to the high-profile launch event.
The pressure came not just from the technology itself, but also from the organization. Wallstreetcn learned the intelligent cabin product line was just recently established by GAC Group, which also formed a strategic deep partnership with Qianwen, aiming to bring Alibaba's core ecosystem into the cabin.
The same urgency was felt in the Power BU. This unit officially became independent on March 18, 2026. Less than a month after operation, it needed to fully release two sets of power systems at Technology Day.
Zhang Heng, who released the Starship body, is from the Vehicle Development Institute; Liang Weiqiang, who explained the Xingling Architecture and chips, is from the Platform Technology Research Institute—both departments established earlier, split from the original GAC Research Institute.
The four leaders on stage represented four organizations established for less than a year. This launch event itself was a newly completed organizational chart.
After “Panyu Action” started, GAC’s first step was dismantling the original research institute system.
The former GAC Research Institute's internal structure was complex: multiple R&D centers, headquarters, and laboratories alongside, functionally overlapping product definition, vehicle development, platform technology, design, and intelligent cabin, leading to long decision chains and slow response.
After more than half a year of adjustments, GAC split it into the Vehicle Development Institute, Platform Technology Research Institute, and Design Institute, also establishing an independent Product HQ. Meanwhile, for branding, Trumpchi BU, Haobo Aion BU, Powertrain BU were set up, and IPD process introduced, aiming for renewed collaboration at the product level.
The management’s logic: Power connects user cost, cabin connects user experience. Independently separating the modules most closely connected to users is to let them face the market, not rely on layer upon layer of approval.
This is not just a reorganization, but a shift from “technology-driven” to “user-driven.”
Dismantling is just the first step; integration is the harder step.
Xingling Architecture 4.0 is a typical case. Platform Technology Research Institute develops the underlying architecture, achieving six-domain integration, 3nm chip support, and 8-minute OTA upgrades; but the actual user experience requires Trumpchi and Haobo Aion BU to apply it in real models, cabin team defines the experience, Power BU does the calibration.
Efficient collaboration among multiple organizations on a single product does not happen spontaneously; it’s a direct test of organizational competence.
In 2025, GAC felt significant performance pressure: annual revenue fell 10.43%, net annual loss to parent company reached 8.784 billion yuan. This was also the year of its most intense restructuring.
Entering 2026, GAC Group General Manager He Xianqing cited latest data: self-owned brand sales grew 42.89% in Q1—a turning point appeared. He defined 2026 as “the key year of Panyu Action reform deepening.”
Deepening means letting the split units achieve efficient integration at the product level.
Not Just GAC’s Test
Across the industry, similar restructuring is happening almost simultaneously.
SAIC consolidated its passenger car division in 2025, unifying Roewe, MG, R EV, and R&D; Dongfeng is pushing self-owned brand integration and strengthening external cooperation; FAW is furthering Hongqi independence and Besturn restructuring. By comparison, GAC’s restructuring is more granular.
This is no accident, but an industry turning point.
Projections show the domestic auto market will grow only about 1% in 2026, the industry shifting from incremental competition to stock game. Meanwhile, JV brand sales are generally declining and the old model of relying on JV profits is failing.
Self-owned brands must have their own “blood-making” ability, directly tied to organizational efficiency and product iteration speed.
Prior to this, BYD, Geely, Chery, etc., had completed plug-in product layout and organizational adjustments and started capturing market share. Their advantage comes not from a single technology, but from the conversion efficiency of “technology—product—channel.”
GAC is racing through BU system reform, process restructuring, and R&D splitting to catch up in compressed time.
The “Panyu Action” vision: by 2027, self-owned brand sales of 2 million, over 60% share. In 2025, self-branded sales are around 610,000, with obvious gap. This target can only be verified through multiple product cycles.
But catching up does not mean simply copying the path.
At Technology Day, GAC showed different directions of attempt.
For instance, chip ecosystem: Haobo GT Climbing Edition uses 1004 chips per car, fully localized on design, collaborating with over 100 ecosystem partners for chip definition and testing. The path is to build industrial synergy system driven by whole-vehicle needs.
With accelerated domestic replacement in vehicle-grade chips, this kind of “OEM-driven ecosystem,” if successful, may mean more than breakthroughs in individual technologies.
Another direction worth watching is “fuel hybrid intelligence.”
While the industry focuses on pure EV and plug-in competition, the smart needs of large numbers of fuel and traditional hybrid users are still unmet. By introducing larger batteries and electrical capabilities, HEV models may achieve EV-like experience. If validated, not only GAC benefits, but JV system may gain new transformation path.
From product rhythm, GAC’s pace is clearly speeding up: Haobo GT Climbing Edition launched in May, Xingling Architecture 4.0 goes into mass production in Q3, and many new cars will launch in the second half. Technology Day is only the first showcase.
The “Panyu Action” pattern is becoming clear: complete organizational reshaping in 2025, major technology releases in H1 2026, intensive product launches in H2.
For GAC, this is a systematic catching up from organization to technology to product.
For the entire Chinese auto industry, the effectiveness of these reforms will be an important observation sample: In a stock market, can traditional automakers regain competitiveness through self-renewal?
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