- GAC Brazil R&D Center accelerates localization before 2027 production.
- Engineering hub advances regional technologies and supplier development.
GAC has officially started operations at its Engineering, Research and Development (R&D) Center in Brazil, located in Sao Paulo. Announced on July 7, the facility becomes the company's second engineering center established outside China, following its existing operation in Europe. The new center is designed to strengthen local engineering capabilities and accelerate product adaptation for Brazilian customers as the automaker expands its presence in the country.
Engineering Center Supports Long-Term Expansion Strategy
The new facility forms an important part of GAC's USD 1.3 billion investment program for Brazil through 2030. Its primary objective is to support vehicle development and localization activities before local manufacturing begins in 2027. By establishing engineering resources within the country, the company aims to better address customer expectations, regulatory requirements and market-specific product needs while reinforcing its long-term commitment to the Brazilian automotive industry.
Key Development Areas at the Sao Paulo Facility
The engineering center will be staffed by Brazilian and Chinese specialists working together on multiple aspects of vehicle development. Their responsibilities include engineering activities, regulatory compliance, market research and localization of advanced vehicle technologies.
- Vehicle engineering and product development
- Regulatory compliance and certification
- Market analysis and localization activities
- Powertrain development
- ADAS technologies
- Suspension, steering and braking systems
- Flex-fuel, hybrid, battery electric and REEV technologies
- Local supplier development
GAC Brazil Investment and Production Timeline
| Milestone | Details |
|---|---|
| Investment Plan | USD 1.3 billion through 2030 |
| Local Production Start | 2027 |
| Assembly Facility | CKD assembly at HPE's Catalao plant |
| Annual Capacity | 50,000 vehicles |
| Market Performance | Nearly 5,000 vehicles registered during first half of 2026 |
Manufacturing Plans Continue Toward 2027
GAC intends to begin completely knocked down (CKD) vehicle assembly at HPE's Catalao plant during the first half of 2027. The facility is expected to deliver an initial production capacity of 50,000 vehicles per year. After entering the Brazilian market in 2025, the automaker recorded registrations of nearly 5,000 vehicles during the first six months of 2026, reflecting continued progress as it prepares for localized manufacturing and expanded operations.
Frequently Asked Questions
Why did GAC establish an R&D center in Brazil?
The new engineering and research center supports GAC's long-term expansion strategy in Brazil by strengthening local vehicle development and technology localization before manufacturing begins in 2027. Engineers at the facility will focus on regulatory compliance, market analysis, powertrains, ADAS, suspension, steering, braking systems, flex-fuel, hybrid, battery electric and REEV technologies while also supporting local supplier development as part of the company's USD 1.3 billion investment plan through 2030.
What are GAC's production plans for Brazil?
GAC plans to start CKD vehicle assembly at HPE's Catalao plant during the first half of 2027 with an initial annual production capacity of 50,000 vehicles. The company entered the Brazilian market in 2025 and had registered nearly 5,000 vehicles during the first half of 2026, marking continued growth while preparing for local manufacturing supported by its newly established engineering and research center.
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