In an era dominated by traditional fuel vehicles, GAC Group carved its niche as one of the industry's most influential heavyweights, significantly bolstered by partnerships with automotive giants like Toyota and HondaAt the zenith of its success, GAC’s market capitalization soared beyond 200 billion yuanHowever, the advent of new energy vehicles and the push for smarter automotive technologies have presented GAC with formidable challenges, resulting in a stark downturn in both sales and profitsNow, with a market valuation plummeting to 93.4 billion yuan, the company actively seeks transformation.

Recently, GAC Group announced a significant leadership change: the former Chairman, Zeng Qinghong, retired due to reaching the retirement age, stepping down from his pivotal roleWith this transition, the question arises: can the newly appointed chairman guide GAC back to the pinnacle of success?

The change in leadership signals the beginning of a new reform period for GACThe incoming chairman, Feng Xingya, now shoulders the responsibility of steering the company through its transformationZeng Qinghong, who took the helm in 2016, led GAC to peak sales during the fuel vehicle era and achieved an impressive annual net profit exceeding 10 billion yuanNotably, he aggressively promoted GAC's development in the realm of new energy vehicles, laying a solid foundation for the company’s transitionUnder Zeng’s guidance, GAC Aion emerged as a leader in China's pure electric vehicle market.

Feng Xingya is no stranger to the automotive industry; recognized as a “child prodigy,” he entered Xi'an Jiaotong University at just 15 years oldHis professional journey began in 1988 at Zhengzhou Nissan Motor Co., where he served as Deputy General Manager of Sales, demonstrating an exceptional flair for sellingIn 2004, he joined GAC Group as Deputy Minister of Sales for GAC Toyota, marking the beginning of a 20-year tenure.

Feng is perhaps best known for masterminding the successful introduction of the sixth-generation Toyota Camry in 2006 under GAC Toyota

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Remarkably, the Camry recouped its investment within the first year of production, achieving sales of 500,000 units within just 40 monthsThis achievement catapulted Feng into the position of Vice General Manager of GAC Group within four years.

Since becoming General Manager of GAC Group in 2016, Feng has concurrently held key leadership roles in GAC’s passenger car and new energy divisionsHis profile was further elevated in August 2022 when he was named one of Forbes China's Best CEOs, ranking 15th.

Feng's vast experience and proven track record place him in a strong position to tackle the pressing challenges GAC facesAs the company’s new leader, he embarks on a challenging journey ahead.

In recent years, the explosion of the new energy vehicle market has created a significant shift, enabling domestic brands to gain ground over traditional joint ventures, leading to a noticeable decline in sales for the latterIn 2024, GAC Toyota and GAC Honda saw wholesale sales drop to 738,000 and 470,600 units, respectively—representing declines of 22.32% and 26.52%. This downturn in higher-margin joint ventures has exerted immense pressure on GAC’s profitability.

In its profit forecast, GAC Group projects a net profit attributable to shareholders of between 800 million and 1.2 billion yuan for 2024—signifying a staggering year-on-year decline of 72.91% to 81.94%. If excluding non-recurring gains and losses, GAC may report losses of between 3.3 billion and 4.7 billion yuan, marking a dramatic 192.37% to 231.56% decrease compared to the previous yearThis would be the first occurrence since 2011 when GAC recorded a negative profit after excluding irregular items.

Under such performance pressures, the company's market value has sharply declinedAt its peak, GAC Group’s market valuation exceeded 200 billion yuan, but as of February 6, it closed at 93.355 billion yuanThe critical question now looms: will the latest leadership change enable GAC to reclaim its former glory?

To navigate market shifts, GAC has embarked on a series of reform initiatives, marking a proactive approach by the leadership even before the formal induction of Feng Xingya

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An ambitious three-year plan dubbed “Panyu Action” has been announced, focusing on sweeping changes from the top down to reshape GAC Group profoundly.

Starting with the management team, GAC intends to enhance its professional management reformsNew systems will promote competitive appointments within senior management while implementing term contracts and performance-based assessments to boost both management efficiency and corporate operational efficacy.

Internally, GAC has established three new departments focused on product management, finance, and procurementThe product division will be tasked with researching consumer needs and collaborating with R&D to release competitive modelsThe finance department aims to oversee and control costs, while the procurement team will enhance resource sharing and optimization.

Furthermore, GAC has initiated substantial reforms in its marketing department by consolidating the operations of its major brands—Trumpchi and Aion—under a unified brand marketing headquartersThis restructured unit will oversee key customer relations and synchronize marketing, sales, channel development, and after-sales service for these brands.

While maintaining the stability of its joint ventures, GAC plans to shift its focus toward its proprietary brandsIn doing so, it aims to invigorate its sales strategies by employing aggressive pricing adjustments; recently, GAC Toyota launched a “one-price” campaign that significantly discounts popular models like the Haval F7 and Vios, with incentives reaching up to 44,000 yuan and providing consumer-friendly financing options.

In the Panyu Action plan, an ambitious target is set to ensure that GAC’s own brand sales are to account for 60% or more of total sales by 2027, with a challenging target of reaching 2 million units for its own brand offerings.

In 2024, GAC Trumpchi reported cumulative sales of 414,600 vehicles, marking a slight increase of 1.99%, making it the group’s only segment to achieve positive growth

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