What Can This Chinese Automobile Manufacturer Teach Your Small Business?


Chinese auto manufacturer GAC Motors recently completed a Phase II production facility that is going to revolutionize the way they manufacture their vehicles. With this new facility, the company plans to rapidly increase its production, expand its business, and all he while work toward environmental preservation — something manufacturers aren’t exactly known for.

So what can this Chinese automobile manufacturer teach small business?  As one of the biggest leaders in their industry, GAC Motors provides a great example of an innovative company focused  not just on rapid growth but also sustainability.

Who Is GAC Motors?

GAC Motors is one of the most prominent Chinese automobile manufacturers. It’s also one of the fastest-growing companies in the world. GAC Motors focuses on building high-quality automobiles for a number of different markets including Asia and the Middle East. The company also plans to enter the American market soon.

Over the past few years, they have focused on aggressive growth. They just made it into the Fortune Global 500 for the 4th year in a row. Currently, the auto maker is focused on expanding its production capacity.

GAC Motors believes completion of its new Phase II production facility will supercharge its automobile production. The new facility will be able to manufacture 150,000 vehicles per year — a game changer in the car manufacturing industry. The completion of the factory marks a new start for the up and coming GAC.

GAC Motor’s Four Fundamental Expansion Principles

According to one of GAC Motor’s spokesmen, the company is following four fundamental principles that govern its expansion efforts. These are the principles that influence the actions the company takes as it continues its rapid growth.

These principles are:

  • An emphasis on product quality.
  • Resource utilization through advanced production mode.
  • Eco-friendly development.
  • Using their results to promote innovation within the auto industry.

GAC Motors believes these guiding principles will help them expand their brand and position them as a leader in their industry. This is especially true when it comes to their environmental efforts.

Not only is their new factory a state-of-the-art way to increase the company’s growth, it will also help manufacture vehicles in a way that is environmentally friendly. By using green and sustainable technologies, the company is in a position to help other auto manufacturers conserve the environment as well.

The Future of Chinese Automobile Manufacturer GAC Motors

GAC Motors plans to reach an annual production capacity of one million vehicles by the year 2020. It also intends to enter the American market, which is something that has been a difficult challenge for Chinese auto manufacturers.

The two main reasons for this is a lack of awareness in the American public and a lack of trust. Americans are used to buying from brands they are already familiar with. These include Toyota, Hyundai, Kia, Chrysler and others. They are not as likely to try something new when it comes to purchasing an automobile.

GAC Motors’ strategy to enter the American market is to make its cars more affordable. The hope is that by making vehicles easier to buy, American consumers will be less hesitant to buy a Chinese car. If the strategy works, it could be a huge opportunity for GAC Motors and even other Chinese auto makers.

GAC Motors Takeaways for Small Businesses

So what can small businesses learn from all this? To be successful in any market, businesses must first focus on quality of products and services. This includes both how you create those products and services and how you market them to your target customers.

To begin with, focus on developing systems that not only allow you to produce products and services of high quality, but also insure this quality is repeatable and sustainable over time. And make it a process that can easily be learned by others so allow you easily increase production when necessary.

Then focus on a marketing approach that gives customers a compelling reason to try your product or service over the competition’s. This could include higher quality, lower cost or something else that makes your product or service stand out.

Finally, focus on giving back to your community and industry.

This could be in the form of sharing resources and expertise with businesses in your industry that offer resources or services complimentary to your own. Or it could include getting involved in your local community with service projects or other activities that will help build your brand.

You don’t need to be a big business to make a big impact. You just need a good plan for how to do it.

Image: GAC Motors


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