GAC has started to deliver on its stated plans for expansion in Europe with the announcement that Tier 1 automotive producer Magna has begun building GAC Aion V electric SUVs.
The company spelled out its ambitions in an exclusive interview with WardsAuto at the IAA Mobility 2025 in Munich in September.
Now the automaker is having vehicles built in Europe at Magna’s production facilities in Graz, Austria. GAC is expecting to avoid European Union import duties on China-made EVs, potentially of up to 45.3% (including the standard 10% duty), by using locally sourced components to manufacture the Aion V.
In a company press release, the company reiterated its view that Europe is an important strategic market for the brand and is seen as leading the industry’s transition to EVs.
“Through widespread partnering with Magna, we are able to offer European customers locally customized and high-quality electric vehicles, which embody GAC’s commitment to intelligent technology, sustainable development and masterful craftsmanship,” Wei Haigang, president of GAC International, said in the statement.
The Aion V has already received the top 5-star safety rating from Europe’s new car safety assessment program (E-NCAP). The model has launched so far in the three markets of Finland, Poland and Portugal while GAC said expansion of sales into other European markets will happen in the coming months.
Magna has 125 years of vehicle manufacturing experience. The company has developed more than 40 vehicle models for customers and produced over 4 million vehicles worldwide.
Its flexible production lines can simultaneously build internal combustion engine vehicles, hybrids and pure EVs.