When conducting cooperation with BYD in alternative energy areas, GAC is also trying to avoid horizontal competition. The joint venture company, GAC BYD New Energy Bus Co. Ltd. (shorted as “GAC BYD”) , mainly targets at Guangzhou new energy bus market, while GAC Trumpchi will try to develop alternative energy passenger vehicles.
On August 5th, BYD released announcements that the Board passed Act on Establishing GAC BYD New Energy Bus Project and agreed to sign Shareholder Agreements on Establishing New Energy Bus Project. The two sides, BYD and GAC, co-invest to establish GAC BYD with a share proportion of 51% and 49% respectively. The joint venture enterprise has a registered capital of 300m RMB and receives a first-stage investment of 120m RMB, all in cash, which is used for prior-stage project construction. The second-stage investment will be cash by BYD, together with cash and shares of GAC Bus by GAC.
Reporters learn from GAC insiders that, the new-established GAC BYD will have different alternative energy products from GAC Trumpchi, with the former mainly producing new energy buses and the latter focusing on new energy passenger vehicles.
Source:Gasgoo