GAC May Shun Toyota Hybrids in Australia, Betting on In-House Tech
GAC, the Chinese automaker preparing to expand its presence in Australia, has cast doubt on whether it will use parent-partner Toyota’s acclaimed hybrid system (THS) in local models. Despite having access to the technology through their joint venture in China, GAC executives indicate that its own plug-in hybrid (PHEV) and battery electric (BEV) systems may offer a better fit for the Australian market.
“I don't think we need [Toyota's hybrid set-up].”
— Masato Katsumata, GAC Chief Technical Officer
The Toyota Option: Available, but Not Favored
Masato Katsumata, GAC’s Chief Technical Officer and a former Toyota executive, confirmed that the company could request THS for Australian vehicles if a business case supports it. However, he highlighted several factors working against that decision:
- Cost and Supply Constraints: THS components are expensive and in high demand.
- Toyota’s Priority: Toyota may prioritize supplying its own vehicles, especially as hybrid sales surge in Europe and America.
- Strategic Competition: GAC may avoid directly competing with Toyota on its home turf—hybrids.
“If that customer is coming from Toyota, should we be fighting with Toyota on HEVs? Or, we have a good plug-in hybrid or battery electric - these might be stronger than using Toyota's hybrid system.”
GAC’s Own Hybrid System: Cheaper and Ready
Katsumata pointed to GAC’s own DHT hybrid system as a more immediate and cost-effective alternative.
“The typical Chinese manufacturer's strength is speed.”
Local CEO Kevin Shu added that GAC’s in-house hybrid technology could power its larger SUVs, such as the GS8, S7, or S9—models already offered with the company’s own plug-in hybrid powertrains in other markets.
Current and Future Australian Lineup
GAC’s existing Australian roster includes a mix of combustion and plug-in models:
- Emzoom
- Aion V
- M8
- Aion UT
Looking ahead, a ute is planned for 2027, and the brand’s hybrid strategy for that model could still pivot depending on market conditions.
“If we want it, headquarters will supply it.”
— Masato Katsumata, confirming THS is not ruled out entirely
Bottom Line
While GAC has the keys to Toyota’s hybrid kingdom, the automaker appears more inclined to forge its own path in Australia—prioritizing proprietary PHEV and BEV technology that offers better margins, supply certainty, and a distinct competitive stance against its partner-turned-rival.