A GAC technician assembles a car at a plant in Guangzhou, Guangdong province. The company is negotiating with its Iranian counterparts on jointly constructing a facility in Iran. [Photo/for China Daily]

Company banks on upcoming venture to open doors in competitive Middle Eastern market

GAC New Energy Automobile Co Ltd is in talks with its Iranian counterparts to jointly construct a completely knocked down facility in the Western Asian country.

According to Xiao Yong, deputy general manager of GAC New Energy, the new facility will help the company to boost sales in the huge Middle East market.

He, however, refused to reveal any further details about the Iran project until the final contract is signed.

Earlier this year, the company had signed a similar CKD project in Nigeria, Xiao said.

"Both the Nigeria and Iran projects are part of the company's strategic development plan to explore overseas markets," he said.

Meanwhile, GAC New Energy, which was officially established in July by Guangzhou Automobile Group Co Ltd, is also negotiating with many big-ticket automobile dealers and partners to expand overseas sales.

In addition to the Middle East market, GAC New Energy Automobile Co Ltd is sparing no effort to tap the southeastern Asia, Africa, North America and European markets, said Xiao.

Xiao said Chinese new energy cars have great potential to expand their reach in the global market.

"Unlike fuel vehicles, Chinese carmakers have a big advantage in new energy automobiles due to China's lead in the sector and the fact that such vehicles are viewed as environmental-friendly options for the future," he said.

"GAC's new energy cars have been able to compete with those produced by big brands from Japan and South Korea, both in terms of quality and technology," he said.

According to Xiao, China will be able to produce electric vehicles, capable of operating up to 600 kilometers once they are fully charged, in 2019.

"Many Chinese-made electric cars can run about 300 kilometers once they are charged," he said. By 2020, all the electric cars would be fully charged in 15 minutes compared with the several hours required now.

Meanwhile, the production cost between a new energy car and a fuel one will be reduced to less than 10,000 yuan ($1,538.46) from more than 100,000 yuan at the moment thanks to the introduction of new technologies and the usage of new materials in 2021.