Toyota’s JV Partner GAC Group Shows Strong Results as COVID-19 Ebbs away in China
In May, the company’s production and sales volume increased year-on-year by 2.89% and 4.07%. Meanwhile, GAC Toyota's numbers grew by 41.56% and 33.40%.
On June 9, GAC Group (02238:HKEX, 601238:SH) released the Report on Production and Sales Volume of Guangzhou Automobile Group Co., Ltd. for May 2020. The company produced 155,411 and sold 165,622 vehicles: the two numbers decreased month-on-month by 13.23% and 0.39%, while increased compared to that of the last May, by 2.89% and 4.07%.
It is the second month in a row for GAC Group to achieve growth in 2020. It has been a case since the most severe period of the COVID-19 epidemic locally ended in March. With the positive performance in the last two months, the company reduced the year-to-date decline in production and sales volume by 6.40% and 6.20%.
In the meantime, GAC Toyota Motor, the joint venture of GAC Group and Toyota Motor Company, achieved production and sales volume of 67,074 and 67,500 in May, recording 41.56% and 33.40% increases year-on-year.
The increase in the production and sales of GAC Group is not an outlier: the whole automotive industry in China welcomed the first month of the year-on-year increase in 2020. According to the data from the China Association of Automobile Manufacturers (CAAM), in April, China passenger vehicle production and sales quantity reached 2.10 million and 2.07 million, up 2.30%, and 4.40% year-on-year.