09:46 21-11-2025

GAC to localize Aion V EV production in Europe at Magna Steyr

China’s Guangzhou Automobile Group announced it will localize production of its Aion V electric crossover in Europe. Assembly will start at Magna Steyr’s plant in Graz, Austria—the same facility where Magna already builds XPeng models. The decision is directly linked to EU tariffs: last year the bloc introduced additional duties of up to 37.6% on Chinese-made EVs, a change that has squeezed margins for brands from China.

By moving assembly to Europe, GAC can avoid those duties and keep pricing competitive as rivalry intensifies in the budget and mid-price EV segments. Wei Haigang, president of GAC International, noted that Europe remains a key pillar of the company’s global strategy. The move looks pragmatic and well-timed given the pressure on affordability in this class.

Magna, meanwhile, reinforces its role as one of the region’s leading contract manufacturers. Roland Prettner, head of Magna Steyr, emphasized that the plant’s modular setup allows combustion models, hybrids, and EVs to be built on shared lines, accelerating 'soft' localization for foreign brands.

GAC’s deal underscores a broader shift: Chinese automakers are rapidly seeking production footholds inside the EU to maintain their position under tightening regulatory pressure.