Guangzhou Automobile Group_ China BEST Conference Takeaways

Company-Specific Information * Product Rollout: Guangzhou Automobile Group (GAC) plans to launch 6 new products under its Aion and Trumpchi brands in 2025. This includes 3 brand new products and 3 facelifts for Aion, and 4 new products for Trumpchi. Sales contribution from these new products is expected to start from Q1 2024. [1] * Huawei Partnership: GAC has partnered with Huawei for product design and customer management. The first B-class luxury SUV under this partnership is expected to be launched in the second half of 2026. GAC aims to launch 4-5 new products in the near future, which management expects will support stable annual sales of 400-500k units. [2] * GAC-Honda JV: GAC-Honda's decision to reduce total capacity in 2024 resulted in a one-off impairment cost of approximately Rmb1.5bn for the joint venture. However, this move improved the total capacity utilization to a healthier level of around 70%, similar to the utilization rate of GAC-Toyota. Management expects both joint ventures to achieve decent profitability at this level of production. [3] Industry Information * Economic Sanctions: The research notes that the data and analysis are for informational purposes only and do not represent Morgan Stanley's view on the potential application of sanctions to any entities or securities mentioned. Users are responsible for ensuring compliance with applicable sanctions. [4] * Export Controls: The research mentions that certain items covered by the Export Administration Regulations (EAR) may be subject to export control restrictions. Users are responsible for ensuring compliance with applicable export control laws. [5] * Industry View: The research provides a detailed analysis of the China Autos & Shared Mobility industry, including stock ratings, price targets, and industry views. [7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78]