Post by : Badri Ariffin

China’s Guangzhou Automobile Group (GAC) has taken a major step toward expanding its presence in Europe by confirming that its electric AION V model will be built in Austria. Production will take place at Magna’s well-known Graz facility, a site already used for gasoline, hybrid and electric vehicles, allowing GAC to directly supply the European market without relying on China-based manufacturing.

The move comes at a crucial time. The European Union last year imposed provisional tariffs of up to 37.6% on electric vehicles imported from China, citing concerns about subsidies and the growing volume of EV shipments. By shifting production to Europe, GAC positions itself to avoid these added costs and remain competitive as demand for EVs rises across the region.

Magna’s Graz plant has long served as a contract manufacturing hub for international automakers, and its flexible production lines allow multiple vehicle types to be made side by side. The partnership also follows Magna’s earlier announcement that it will produce battery-powered models for XPeng at the same facility, further strengthening Graz’s role as a key EV assembly center.

With the AION V set to roll out from Austria, GAC gains a strategic foothold in Europe’s automotive landscape, signaling a broader wave of Chinese EV makers looking to localize operations in response to shifting trade policies.

#Business News