GAC Motor is making a major move into Brazil, investing $6 billion to transform a former automotive plant in Catalão, Goiás, into a hub for ethanol-electric vehicle production. The company will start by investing $1.3 billion to upgrade the facility for manufacturing three new models: a hybrid SUV, an electric vehicle, and a premium electric model.

This investment marks the largest automotive foreign investment in Brazil in recent years. GAC aims to capture 8% of the Brazilian car market by 2030. The plant, which has been inactive since 2023, will initially provide 1,200 jobs, with plans to increase the workforce to 4,500 by 2026.

A key part of GAC’s strategy is to capitalize on Brazil’s strong ethanol industry. The company is collaborating with local universities to develop flex-hybrid engines that can run on sugarcane-based ethanol. Additionally, a new research and development center in Northeast Brazil will focus on improving battery performance in tropical climates, supported by significant academic funding.

This investment is expected to create jobs and promote technology transfer in Brazil. GAC is also working to localize production, drawing on experience from partnerships with major global automakers. Its distribution center in São Paulo supports the launch of several new models.

GAC’s approach stands out by offering hybrid vehicles compatible with ethanol, in addition to fully electric models. This strategy is designed to appeal to rural areas where charging infrastructure is limited. The hybrid SUV, for example, combines a powerful electric motor with a flex-fuel generator.

This dual focus aligns with national policies that encourage the adoption of low-emission vehicles. GAC is also supporting major environmental events in Brazil with a fleet of electric vehicles, addressing concerns about the environmental impact of its operations.

With a new technology complex near São Paulo and plans to open 50 dealerships, GAC is positioning itself as a link between traditional automakers and the growing electric vehicle market. The company also plans to begin exporting vehicles from Brazil to neighboring countries, testing the demand for its hybrid and electric offerings across the region.