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The joint venture, which currently has capacity to make 328,000 vehicles a year, sold only 12,288 in the first seven months this year.
It will transfer production from Guangzhou to Changsha to “increase utilisation rate of plants and lower cost”, GAC said in a statement.
The joint venture was launched by GAC and FCA, which merged with PSA to become Stellantis. A Stellantis spokesperson declined to comment.
As well as the GAC partnership, Stellantis also operates a joint venture with Dongfeng Motor Group, which sold 47,788 cars between January and July.