by GAC Partners with Magna to Manufacture Electric Vehicles in Europe
The Chinese automaker Guangzhou Automobile Group (GAC) is expanding its presence in Europe by entering into a partnership with contract manufacturer Magna. This step will allow the company to avoid high customs duties on the import of finished cars, which is particularly relevant in the context of increasing trade restrictions.
Production at Magna’s Facility in Austria
The Aion V electric crossover will be manufactured at the Magna plant in Graz, Austria. This production site has a rich history: it has assembled models such as the Mercedes-Benz G-Class, Jaguar I-Pace, BMW 5-Series, and Toyota GR Supra. Recently, Magna has had available capacity due to the completion of contracts with a number of automakers, creating ideal conditions for new partnerships.
Technical Specifications of the Aion V
Experience of Other Chinese Manufacturers
Magna already has experience working with Chinese brands: since September, the Xpeng G6 and G9 crossovers have been assembled at the plant in Graz. This process has its peculiarities: the cars are fully manufactured in China, then partially disassembled, transported to Austria, and reassembled for final supply. This scheme allows for paying duties only on components, not on finished vehicles.
Plans for Global Expansion
GAC plans to introduce the Aion V in the markets of over 30 countries, including Australia and numerous European states. The model could become a serious competitor to the Geely EX5 and BYD Atto 3 thanks to an attractive combination of technical characteristics and pricing policy.
The partnership with Magna demonstrates how Chinese automakers are adapting to European realities by using local production to optimize costs. This strategy could significantly impact the structure of the electric vehicle market in Europe, where local manufacturers are facing increasing competition from Asian companies offering technologically advanced and economically advantageous solutions.
