Hypertec, once earmarked for "unlimited" development support, now finds itself facing austerity measures. On December 18th, GAC officially rolled out new reform measures for its independent brand BU, establishing the Hypertec Aion BU and bringing the two brands under one umbrella for coordinated operations. Reports indicate that Zhang Xiong will helm the Hypertec Aion BU as President, with Feng Yu stepping in as Vice President of Products and Yang Long taking on the role of Vice President of Sales and Services.

Sources reveal that GAC's independent BU divisions will shoulder full responsibility for the entire process, from product planning and R&D to market launch and profitability, ultimately being accountable for market performance and commercial success. Furthermore, GAC has announced that the Trumpchi BU is also in the preparatory stages for implementation. Coupled with the independently operated Qijing brand, developed in collaboration with Huawei's Qiankun, GAC is set to form a matrix of three independent brands: Trumpchi BU, Hypertec Aion BU, and Qijing.

GAC also clarified in its press release that the initial phase of the Hypertec Aion BU reform aims to maximize the synergistic value of resources, boost organizational management efficiency, and expedite technological innovation iteration and market responsiveness through strategic focus. Looking ahead, the Hypertec brand will zero in on the "elite vehicle" segment, targeting the high-end market, while the Aion brand will maintain its focus on the "national favorite car" positioning, catering to the mass market.

Following the establishment of the Hypertec Aion BU, the sales channels for Hypertec and Aion brands will be integrated and operated jointly, with the integration of the two brands' channels proceeding in stages. Phase 1: By January 31, 2026, the first batch of sales outlets integrating Hypertec and Aion sales and services will be officially unveiled, expected to span over 30 cities nationwide. At that juncture, the same sales outlet will offer sales and services for both brands. Phase 2: By March 31, 2026, Hypertec and Aion brands will achieve full channel integration, forming a network of over 1,000 sales outlets, covering all cities above the fourth tier nationwide.

GAC stated that by integrating the channel resources of both brands, the future Hypertec service network will expand from the current 200 outlets to 1,000, addressing the long-standing issue of service accessibility for Hypertec users. Aion users will also reap the benefits of a richer product selection, meeting their needs for upgraded vehicle usage. Although GAC emphasized in its statement that the service rights and quality for Hypertec brand owners will remain unchanged post-integration, and service accessibility will see a significant uptick, outsiders still interpret this move as a reduction in investment in Hypertec.

This interpretation is not hard to fathom. Hypertec, originally a sub-brand of Aion aimed at the high-end market, was officially launched in September 2022. With the advancement of GAC Group's "Panyu Initiative" reform, Hypertec emerged as an independent brand in early 2025, joining Aion and Trumpchi as one of GAC's three major independent brands, directly managed by the group. At that time, Feng Xingya, Chairman of GAC Group, publicly voiced support for Hypertec's development on multiple occasions. "In the next three years, GAC Group will throw its full weight behind Hypertec, investing the group's top human, material, and financial resources into the brand. Hypertec will undoubtedly become a leading high-end brand in China," declared Huang Yongqiang, Head of GAC Group's Brand Marketing Division, at the Hypertec HL pre-sale launch event in March.

However, whether as a sub-brand of Aion or as an independent entity, Hypertec has struggled to make a mark in the high-end market. The first model, Hypertec SSR, priced at over a million yuan, is not a volume seller and thus will not be discussed here. Subsequent models have also witnessed relatively low sales. The mid-to-large-sized family sports car, Hypertec GT, launched in April 2023, has only managed to sell a few hundred units per month. The mid-to-large-sized SUV, Hypertec HT, launched in February 2024, has failed to help Hypertec gain market share, with sales hovering around 1,000 units for an extended period. The first model after independence, Hypertec HL, which received strong group support and range-extending powertrain technology, has also consistently seen monthly sales in the triple digits.

Consequently, after significant resource investment, Hypertec's inability to gain market traction has compelled GAC, which is currently in the midst of reform, to rethink its future. Mirror Pro has learned that GAC has indeed recalibrated resource allocation for Hypertec, with some new model projects being axed. Given Hypertec's underperformance and limited resources, this outcome was inevitable.

Apart from Hypertec's sales falling short of expectations, another factor contributing to this adjustment may be the newly established Qijing brand. Qijing is also positioned as a high-end new energy brand. If Hypertec continues to exist, there may be issues of positioning conflict and resource competition between the two. Rather than letting Hypertec continue to "bleed" in the high-end market, it may be more prudent to allocate limited resources to the more promising Qijing. Given the time constraints and limited resources, Qijing, backed by Huawei's reputation, may be able to assist GAC in establishing a high-end brand more swiftly. If Qijing can carve out a niche in the high-end market, it will also benefit Aion in shedding unfavorable labels and support Trumpchi's new energy transformation.

Such cases are far from rare. For instance, Chery's Exeed brand made way for Luxeed, reverting to the Chery brand and reconsidering its positioning. Moreover, there are instances of internal integration to streamline back-office operations, such as Geely's Lynk & Co and Zeekr brands. Hence, the merger of two brands is not necessarily a setback; transitioning from independent brands to divisions may herald a new beginning.

Nevertheless, there is no denying that the shift from "unlimited" support for Hypertec to integration with Aion is not a mere strategic retreat but a strategic focus and resource reconfiguration by GAC Group in response to the harsh market realities. Over the past two years, with declining sales in the joint venture fuel vehicle segment and its three major independent brands, GAC finds itself at a critical juncture. In Feng Xingya's words, GAC is currently in a "wartime state." In the first three quarters of 2025, GAC Group sold 1.1837 million vehicles.

The sales pressure has also taken a direct toll on GAC's financial performance. The latest financial report data reveals that in the first three quarters, GAC Group achieved revenue of 66.272 billion yuan, with third-quarter revenue at 24.106 billion yuan and a net profit attributable to shareholders of a loss of 1.774 billion yuan.

Facing performance pressures, GAC has already rolled out a series of measures. In addition to the independent brand BU reform, GAC has also embraced Huawei's IPD (Integrated Product Development) system. Feng Xingya stated that the system has yielded initial success, reducing the new product development cycle from the original 30 months to 18-24 months and cutting product development costs by 10%, laying the groundwork for accelerated product iteration. Additionally, GAC has actively recruited external talent from internet and technology companies this year, attempting to invigorate development with "fresh blood." For example, Ao Zhiyi, with prior work experience at Honor and XPENG, was recruited mid-year to serve as Trumpchi's CMO.

With the completion of this series of reforms and the launch of Qijing's first model in mid-2026, GAC will also set its sights on achieving annual sales of 2 million vehicles for its independent brands by 2027, in line with the three-year "Panyu Initiative" plan.