Posted on 25 Nov 2025
Chinese automaker GAC is localising electric vehicle production in Europe through a manufacturing contract with Magna International, Kallanish learns from the companies.
The undisclosed deal covers the assembly of the Aion V all-electric SUV at Magna’s Graz facility in Austria. Production has already commenced, but the companies have not revealed the planned annual volumes and a ramp-up timeline.
The BEV has earned a five-star Euro NCAP rating, and debuted in Finland, Poland and Portugal. With a WTLP range of 510 kilometres (316 miles) and a 75.3-kilowatt-hour battery, the SUV is expected to be priced from €35,990 ($41,458) in Europe.
“Europe is a vital market in GAC’s global development,” says Wei Haigang, president of GAC International. “Partnering with Magna enables us to bring locally assembled electric vehicles to European customers that reflect GAC’s values of smart technology, sustainability and craftsmanship.”
This is Magna’s second such contract with a Chinese manufacturer following its deal with Xpeng earlier this year. It reflects OEMs’ move to extend their footprint in Europe and avoid import tariffs imposed on made-in-China BEVs. GAC faces a 45% import duty in the EU.
The Chinese state-owned carmaker officially entered the European market in September, debuting the Aion V and the Hyptec HT BEV, in Warsaw, Poland. It’s unclear, however, if Magna will also produce the Hyptec HT model.
Further expansion is planned on the service and sales front, GAC says, noting it’s seeking additional markets through new partnerships. The move reflects its “regional commitment” to Europe, it adds.
Earlier, Xpeng said that overseas markets will continue to be a “major” growth driver for the company. The EV maker is ramping up production of two BEV models at Graz and said it’s looking at additional opportunities to localise assembly in other markets.
Source:Kallanish
