In November 2024, GAC Group relocated its headquarters from Zhujiang New Town to Panyu Auto City, launching a three-year initiative termed the "Panyu Action." Chairman Feng Xingya stated at the time that to make decisions, one must be able to "hear the artillery fire."

Over the following year and a half, GAC underwent its most intensive period of internal restructuring since its listing. This involved splitting the R&D system, integrating marketing functions, introducing IPD processes, implementing competitive hiring for managerial positions, establishing the Aion Hyper BU and Trumpchi BU successively, and spinning off the Powertrain BU as an independent unit in March of this year. Essentially, the entire chain from R&D and production to supply and sales was disassembled and reassembled.

The results of these reforms were showcased on April 12th. That evening, during the 2026 GAC Tech Day held at its Panyu headquarters, GAC released five technologies spanning powertrains, body structure, cockpit systems, electronic/electrical architecture, and chips. The breadth of coverage was uncommon for a single tech day event held by a domestic automaker.

This Tech Day essentially served as a concentrated review of the achievements from GAC's reforms over the past year and a half.

It is understood that GAC will also release advancements in intelligent chassis technology, upgrades to its magazine battery, ultra-low temperature resistant batteries, and progress on all-solid-state batteries within the year. This indicates that the reform process is far from over; more cards will continue to be laid on the table.

Having spent a year and a half dismantling and rebuilding itself, the remaining question for GAC is whether it can lay down its cards quickly enough.

A Shifting Competitive Landscape GAC's development of hybrid technology did not start late. It formed a new energy powertrain team in 2006, launched its first hybrid model in 2013, and began mass production of its self-developed GMC 1.0 system in 2017. Qi Hongzhong, President of the Powertrain BU, outlined this nearly 20-year technical pathway during the Tech Day, emphasizing that GAC is a "pioneer of hybrid technology in China."

However, the true watershed moment arrived in 2021. That year marked a turning point for the plug-in hybrid market in China. BYD launched its DM-i super hybrid system in January, with equipped models selling over 200,000 units that year. Similarly, Geely, Great Wall, Changan, and Chery also released their own hybrid systems in 2021. By 2024, BYD had iterated to its fifth-generation DM technology, and the plug-in hybrid product matrices of various automakers had already covered all price segments from A-segment sedans to C-segment SUVs. The share of plug-in hybrid/extended-range vehicles within the new energy vehicle sector rose rapidly, approaching half in some months.

During this critical window, GAC's technological focus leaned more towards pure electric vehicles. The Aion brand even topped the monthly sales charts for new automakers in 2022. In the plug-in hybrid segment, it wasn't until the August 2025 release of the Xingyuan EREV that GAC addressed one aspect. The complete plug-in hybrid technology brand, "Xingyuan PHEV," was only unveiled during the Tech Day.

In terms of parameters, the Xingyuan PHEV GMC 3.0 transmission comes in Thunder and Gale versions. The Thunder version, paired with a P4 rear electric drive, delivers a total wheel-end torque of 10,000 N·m, enabling large and mid-size SUVs to achieve 0-100 km/h acceleration in the 4-second range. The Gale version weighs 98.5 kg, making it one of the few mass-produced dual-motor hybrid transmissions under 100 kg. It boasts a WLTC driving efficiency of 93% and an electronic control efficiency of 99.2%.

Regarding energy consumption, official data indicates that vehicles weighing around 2 tonnes can achieve fuel consumption in the "3-liter range" per 100 km, while A-segment sedans can reach the "2-liter range."

Rather than positioning it simply as a catch-up product, GAC is attempting to differentiate it with a "capable in city and wild" positioning. This includes four-wheel vector control, a claimed 70% gradeability, a single-wheel escape torque of 5,000 N·m, and a 35% improvement in passability.

One of the first models to feature this system will be a new rugged off-road SUV from Trumpchi. This also marks GAC's first entry into this specific market segment, targeting the currently popular segment of domestic hardcore SUVs.

While shoring up its plug-in hybrid capabilities, GAC is also attempting to carve out space along another path.

The "Xingyuan Super Hybrid" (HEV+), launched at the same event, is equipped with a 5.4 kWh battery, a discharge power of 150 kW, enables pure electric driving at low speeds (over 17 km), and supports the operation of air conditioning, audio/video, sentry mode, and full-vehicle OTA updates without starting the engine. Qi Hongzhong defined this as "hybrids entering the smartphone era from the feature phone era."

This judgment is based on changing market dynamics. Industry expectations suggest that 2025 will be a watershed for the share of plug-in hybrid/EREVs within the new energy vehicle market, while competition in the HEV segment is intensifying. Starting in 2026, the new energy vehicle purchase tax incentive begins to phase out. HEV models, unaffected by the new purchase tax policy, are反而迎来一个新的窗口期 (ushering in a new window of opportunity).

Simultaneously, the level of intelligent features in traditional internal combustion engine vehicles and standard HEVs generally remains low, leaving the demands of a large existing user base unmet.

The Xingyuan Super Hybrid aims to fill this gap by providing users with an intelligent experience接近电动车 (close to that of electric vehicles) without changing the powertrain format.

Indeed, GAC's major push into the plug-in hybrid segment is somewhat late. However, while playing catch-up, it is also attempting to define a market space that has not yet been fully developed. The success of these two paths will depend on the market performance of subsequent products.

After Dismantling the Research Institute Zhu Taiping did significant mental preparation before taking the stage. As the head of the newly formed Intelligent Cockpit Product Line, he appeared at this high-profile launch event leading a team that was still being built.

The pressure came not only from the technology itself but also from the organizational structure. It is understood that the Intelligent Cockpit Product Line was recently established within GAC Group. GAC has also entered into a strategic, in-depth cooperation with Qianwen, aiming to integrate Alibaba's core ecosystem into the cockpit.

A similar sense of urgency was evident within the Powertrain BU. This business unit became officially independent on March 18, 2026, and less than a month later, it was required to fully launch two complete powertrain systems at the Tech Day.

Zhang Heng, who presented the Starship Body, is from the Vehicle Development Institute. Liang Weiqiang, who explained the Xingling Architecture and chips, is from the Platform Technology Research Institute. These two departments were established slightly earlier, both having been split off from the former GAC Research and Development Center.

The four responsible persons on stage came from four different organizations, each less than a year old. This launch event itself was a presentation of a newly reconfigured organizational chart.

Following the initiation of the "Panyu Action," GAC's first major move was to拆分原有研究院体系 (dismantle the original R&D institute system). The previous GAC R&D Center had a complex internal structure, with multiple R&D centers, headquarters, and laboratories operating in parallel. Functions like product definition, vehicle development, platform technology, styling design, and intelligent cockpit were intertwined, leading to long decision-making chains and slow response times.

After more than half a year of adjustments, GAC split it into three primary departments: the Vehicle Development Institute, the Platform Technology Research Institute, and the Styling Design Institute, while also establishing an independent Product Headquarters. Concurrently, it formed the Trumpchi BU, Aion Hyper BU, and Powertrain BU along brand dimensions, and introduced IPD processes in an attempt to重新实现协同 (re-establish coordination) at the product level.

The logic provided by management is that the powertrain connects to user costs, and the cockpit connects to the user experience. By making these user-facing modules independent, the goal is for them to respond directly to the market, rather than relying on层层审批 (layers of approval).

This is not merely a simple organizational adjustment but an attempt to shift from being "technology-driven" to being "user-driven."

Dismantling is only the first step; integration is the more difficult step. The Xingling Architecture 4.0 serves as a typical case study. The Platform Technology Research Institute is responsible for developing the underlying architecture, achieving six-domain integration, support for 3nm chips, and 8-minute OTA capabilities. However, the actual user experience requires the Trumpchi and Aion Hyper BUs to implement it in specific models, with the cockpit team defining the experience and the Powertrain BU completing the calibration.

Efficient collaboration across multiple organizations on a single product does not happen naturally; it is a direct test of the overall organizational capability.

In 2025, GAC faced significant performance pressure: full-year revenue declined by 10.43%, and net profit attributable to the parent company showed a loss of 8.784 billion yuan. This恰好是其组织重构最剧烈的一年 (coincided with the most intense year of its organizational restructuring).

Entering 2026, He Xianqing, General Manager of GAC Group, provided the latest data showing a 42.89% sales growth rate for its proprietary brands in the first quarter, indicating a potential turning point. He defined 2026 as the "critical year for deepening the reforms of the Panyu Action."

This so-called deepening involves enabling the various split-off units to重新实现高效咬合 (re-engage efficiently) at the product level.

A Collective Test Beyond GAC Looking across the entire industry, similar restructuring efforts have been occurring almost simultaneously. SAIC integrated its passenger vehicle segment in 2025, unifying Roewe, MG, Feifan, and their R&D systems. Dongfeng promoted the integration of its proprietary brands and strengthened external cooperation. FAW advanced the independence of Hongqi and the reorganization of Bestune. In comparison, GAC's拆分粒度更细 (splitting is more granular).

This is not coincidental but rather a result of the industry entering a new phase. Predictions indicate that the overall growth rate of the domestic automotive market in 2026 will be only about 1%, signaling a shift from增量竞争 (incremental competition) to存量博弈 (competition for market share). At the same time, sales of joint venture brands are generally declining, rendering the previous model of relying on joint venture profits for support ineffective.

Proprietary brands must now possess independent "造血"能力 (profitability capabilities), which directly depends on organizational efficiency and product iteration speed.

Prior to this, companies like BYD, Geely, and Chery had already completed their plug-in hybrid product layouts and organizational adjustments, and have begun to harvest market share. Their advantage lies not in any single technology, but in the overall conversion efficiency of the "technology-product-channel" chain.

GAC is attempting to catch up with this process within a compressed timeframe through BU reforms, process re-engineering, and R&D restructuring.

The "Panyu Action" aims to achieve sales of 2 million vehicles for its proprietary brands by 2027, accounting for over 60% of total sales. In contrast, its proprietary brand sales in 2025 were approximately 610,000 vehicles, indicating a significant gap. This target must be validated over multiple product cycles.

However, catching up does not mean完全复制路径 (simply replicating the path of others).

During this Tech Day, GAC also demonstrated different strategic attempts. For instance, in the chip ecosystem: the Aion GT Climbing Edition is equipped with 1,004 chips throughout the vehicle, achieving design-level localization, and collaborates with over a hundred ecosystem partners to advance chip definition and verification. Its approach is牵引 (led) by vehicle requirements to build an industrial collaborative system. Against the backdrop of accelerating localization of automotive-grade chips, this "OEM-led ecosystem" model, if successfully implemented, could hold significance beyond a single technological breakthrough.

Another noteworthy direction is the "intelligentization of HEVs." While the industry focuses on the competition between pure electric and plug-in hybrid vehicles, the intelligent needs of a vast number of internal combustion engine and traditional HEV users remain largely unmet. By introducing larger batteries and enhanced electrical capabilities, HEV models could potentially offer an experience接近电动车 (close to that of electric vehicles). If this product category proves successful, not only would GAC benefit, but joint venture systems might also gain a new转型路径 (transformation path).

Judging by the product timeline, GAC's pace has clearly accelerated: the Aion GT Climbing Edition launched in May, the Xingling Architecture 4.0 will enter mass production and be implemented in vehicles in the third quarter, and multiple new models will be集中推出 (launched intensively) in the second half of the year. The Tech Day was merely the first round of展示 (demonstration).

The rhythm of the "Panyu Action" is becoming clearer: complete organizational restructuring in 2025,集中技术亮相 (concentrated technology unveiling) in the first half of 2026, and a密集投放期 (period of intensive product launches) in the second half of 2026.

For GAC, this is a systematic race to catch up, spanning organization, technology, and products.

For the entire Chinese automotive industry, the effectiveness of this reform will also serve as an important case study: whether traditional automakers can regain competitiveness through self-reconstruction in a存量市场 (market focused on existing customers).