Strategy aims to quickly adapt to the domestic market with the production of the GAC GS3 compact SUV, equipped with a turbo flex engine, in the interior of Goiás
The Chinese automaker GAC announced the installation of its first factory in Brazil, the result of a strategic partnership with Mitsubishi Motors. Production will be concentrated in the existing industrial complex of HPE Automotores, in Catalão, in the southeast of Goiás – a unit that is currently responsible for assembling the Japanese brand’s vehicles in Brazil.
According to information gathered by journalist Jorge Moraes, the company’s official announcement will detail the complete portfolio of vehicles to be nationalized, as well as the schedule of operations of the plant in Goiás. The maneuver reveals a pragmatic strategy by GAC: instead of building a facility from scratch, the manufacturer will take advantage of a robust infrastructure already in place. The HPE complex totals 247 thousand square meters of area and has an installed capacity to deliver up to 120 thousand vehicles per year, ensuring the Chinese brand the necessary agility to accelerate the start of its local sales.
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The project foresees, in its initial phase, the simplified assembly of vehicles that come prefabricated from Asia, with a gradual evolution to a complete and independent production line. The financial contribution to make the operation feasible is significant: it is an investment of R$ 6 billion, designed for the automaker to reach, within five years, a robust volume of 100 thousand cars produced annually.
The pioneer of this new manufacturing phase will be the GAC GS3 compact SUV. To meet the demands and preferences of the local consumer, the SUV will come off the assembly lines equipped with a 1.5 turbo flex engine. The model sets the tone for GAC’s long-term strategy, which is primarily focused on the hybrid and flex-fuel vehicle market.
GAC’s move is not isolated and reinforces a new wave of Asian industrialization in the Brazilian market. In recent years, other Chinese giants have put down productive roots in the country. BYD, the current leader in electrified sales, installed its manufacturing complex in Camaçari, Bahia, with a focus on the production of models such as the Song Plus hybrid and the electric Dolphin Mini.
Likewise, GWM took over the old Mercedes-Benz plant in Iracemápolis, in the interior of São Paulo. The automaker prepared the unit for local production of the Haval H6 hybrid SUV, supported by an investment plan of R$ 10 billion over ten years.
The heating up of the sector also attracts newcomers. In addition to Caoa Chery’s already consolidated operations, names such as Omoda and Jaecoo are preparing the ground and signaling the intention to start local manufacturing of their vehicles in Brazil between 2026 and 2030. The joint strategy seeks to escape high import tariffs, take advantage of tax benefits from the Mover program and expand its reach in the Brazilian market.
