Shanghai (ZXZC)- GAC Group will start producing plug-in hybrid electric vehicle (PHEV) models under its wholly-owned brands next year, according to the group's minutes of an investor relations event, citing the information it recently revealed at a roadshow.

GAC Group said it logged a remarkable year-on-year growth in the PHEV sales in the first half of 2022. The primary contributing factor to the sales growth was the comparative advantage of PHEVs over BEVs (battery-electric vehicles) and oil-fueled vehicles in both purchase and usage costs, which mainly flew from the rise in battery costs and oil prices.

Meanwhile, the group predicted that PHEV would still hold a certain amount of market shares over the next few years.

Photo credit: GAC Group

The Guangzhou-based auto giant added it was able to launch mature PHEV products after sailing through a necessary development cycle based on the hybrid electric vehicle (HEV) technologies it has already grasped and the actual market demands.

In addition, GAC Group noted it regarded batteries and electric drive systems as core parts of new energy vehicles (NEV). Amid the fast growth of the NEV market, GAC AION's BEV models and GAC Trumpchi's HEV models are facing hike in demands for batteries and electric drive systems. In the meantime, GAC Group has laid a foundation for commercialization thanks to its multi-year efforts to build its own R&D systems of batteries and electric drive systems. Therefore, GAC Group's board of directors has approved proposals to set up subsidiaries for electric drive system and battery production since August this year, with ground-breakings planned to begin by the end of this year.