Chinese State-Owned Automaker GAC To Enter Japan’s EV Market After BYD: Report

One of China’s state-owned automakers, Guangzhou Automobile Company (GAC), is reportedly planning to sell its EVs in the Japanese car market.

GAC To Follow BYD’s Steps?

GAC will offer its EVs in the market next year, aiming for 2,000 orders in Japan for its vehicles by 2027, Nikkei Asia reported on Wednesday. The company will offer its Aion UT and Aion V SUV, with the Aion UT commanding a price of around 3.3 million Yen or $21,000, and will sell the vehicles through Japan-based M Mobility, the report says.

Chinese EV giant BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) recently announced its entry into the Japanese ‘Kei’ car market with the Racco EV. The Kei car segment comprises vehicles that are smaller in size than mainstream vehicles and offer better tax benefits, though the benefits have reduced in recent times.

BYD is also said to be targeting the launch of the Racco in the European market as the automaker is awaiting a green light by EU regulators, who have been mulling regulations to allow European-made compact vehicles, dubbed the E-Car class, to be sold in the region.

Trump Approves Kei Cars In The US

Meanwhile, President Donald Trump also announced he had approved the production of «really cute» compact cars that he saw in South Korea and Japan, made by Japanese automakers like Toyota Motor Corp (NYSE:TM) and Honda Motor Co. Ltd. (NYSE:HMC).

The administration has recently been touting affordability in the industry as it rolled back Corporate Average Fuel Economy (CAFE) standards, a move that was hailed by Ford Motor Co. (NYSE:F) CEO Jim Farley.

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