Chinese automaker GAC is making a strategic move into the European market by partnering with Austrian contract manufacturer Magna. This partnership will see GAC’s all-electric Aion V SUV produced at Magna’s plant in Graz, Austria. The decision comes as tariffs on fully built vehicles are rising, presenting a significant challenge for Chinese manufacturers looking to establish themselves in Europe.
The Aion V offers impressive range and performance with up to 466 miles (750 km) of CLTC range from its largest battery pack and a powerful electric motor producing 181 horsepower. Since its unveiling last year, the SUV has gained traction in China, and GAC now aims to leverage this success abroad.
Magna’s Graz facility is no stranger to high-end car production, having built models for luxury brands like Mercedes-Benz, Jaguar, BMW, and even Toyota. With several contracts nearing their end, Magna sees this as an opportunity to collaborate with new partners like GAC. This arrangement also allows Chinese automakers a way to avoid hefty import tariffs by assembling vehicles in Europe rather than shipping them fully built.
One such strategy involves partially disassembling cars produced in China and reassembling them at the Austrian plant. Xpeng has already adopted this method for its G6 and G9 SUVs, shipped from Chinese production lines to Graz. While it’s not confirmed if GAC will follow suit with the Aion V, the approach offers a practical solution to navigate current trade regulations.
GAC plans to introduce the Aion V into over 30 global markets, including key European countries and Australia. The move reflects China’s growing influence in the international automotive sector as it seeks to compete with established players from Japan, Germany, and the US. With strong domestic sales under its belt, GAC is now positioning itself for a more expansive market presence.
