A Sinopec gas station with a GAC sales point in Zhanjiang, Guangdong. Credit: GAC
- The move marks the first such attempt for GAC and Sinopec, as the automaker seeks to expand its service reach in less-developed regions.
- GAC’s total vehicle sales rose 8.18% year-on-year in May, driven by a surge in NEV deliveries.
GAC (HKEX: 2238) is embarking on an unprecedented partnership with energy giant Sinopec to sell cars directly at the latter’s gas stations.
The Chinese auto giant announced the initiative in a statement on Wednesday, hoping to carve out new sales channels in the country’s fiercely competitive auto market.
China’s first integrated “energy and auto” service station recently opened in Zhanjiang, Guangdong province. The facility combines car viewing, purchasing, maintenance, and refueling into a single location.
The innovative model aims to fill the gap in auto services in less-developed county-level markets. By leveraging Sinopec’s massive gas station network and natural foot traffic, GAC hopes to lower the cost of customer acquisition and service reach.
This is also Sinopec’s first such station as it expands into the auto service sector. The two companies plan to use the site as a prototype to explore a replicable and scalable new service model for county-level areas.
The move is part of GAC’s broader efforts to boost sales, as well as Sinopec’s push to transform into an integrated energy service provider in the electric vehicle (EV) era.
Also on Wednesday, Sinopec announced a partnership with BYD (HKEX: 1211) to advance the construction of the latter’s flash charging facilities.
GAC, one of China’s largest automotive groups, saw its vehicle sales reach 127,330 units in May, an 8.18% increase from a year earlier.
NEVs and overseas markets have become the core engines driving this growth. In May, the company’s NEV sales surged 71.64% year-on-year to 46,056 units.
Exports of GAC’s proprietary brands skyrocketed 140% year-on-year in May to 28,386 units. Retail sales across multiple markets in the Asia-Pacific and the Americas recorded triple-digit growth.
Its NEV brand, GAC Aion, delivered a stellar performance, with May sales jumping 74.76% year-on-year to 31,946 units.
In addition, the GT7, the first model under the Aistaland brand jointly created by GAC and Huawei, began pre-sales in late May. Its pre-sales price ranges from 219,900 yuan ($32,480) to 309,900 yuan.
The new model, equipped with Huawei’s advanced smart driving system, has received a strong market response. Within just five hours of opening pre-sales, orders surpassed the 10,000-unit mark.
The experience and service network for the Aistaland GT7 is also accelerating its roll-out, with 300 stores across 70 cities set to be fully operational by the end of June.
The Aion UT becomes GAC’s second EV model produced in Austria, following the Aion V.
($1 = 6.7706 yuan)
