by Chinese Automaker GAC Expands Its Presence in Europe
Chinese automakers are no longer gradually advancing into the European market—they have launched a large-scale offensive that is already impacting sales of local brands. One such newcomer is GAC, which has set an ambitious goal: to achieve annual sales of over 50,000 cars in Europe by 2027.
At the auto show in Munich, the company presented the compact hatchback GAC Aion UT and the mid-size off-roader GAC Aion V. The European lineup will also include the electric crossover GAC Aion Y and the more premium coupe-SUV Hyptec HT. Currently, all models are electric, although a plug-in hybrid will be added to the lineup later.
Strategic Plans and Goals
GAC International President Wei Haigan stated at the Munich exhibition that Europe is one of the company’s five key markets.
This is a strategic market, — he emphasized, — and we hope that in the coming years it will become an important part of our overseas business.
Haigan forecasts that GAC’s sales in Europe will amount to 3,000 cars this year, rise to 15,000 in 2026, and exceed 50,000 by 2027. This represents a seventeen-fold growth in just two years, although these figures still lag behind the company’s domestic performance. In 2024, GAC sold 127,000 cars in overseas markets, while total global sales reached 2,003,058 units.
Plans for Production Localization
To mitigate the impact of import tariffs from China, GAC is considering the possibility of manufacturing cars directly in Europe. Haigan expressed hope for progress in trade negotiations but noted that the company is also preparing for production localization to better serve European customers.
We hope that the Chinese government and the European Union can hold further negotiations on tariff reductions. In the future, we plan to accelerate production localization to create manufacturing facilities in Europe and better serve European markets, — he said.
Market Dynamics and Competition
Automotive industry data confirms the rapid growth of the market share of Chinese brands. According to Jato Dynamics, their combined market share in Europe almost doubled in the first half of 2025, reaching 5.1%, equivalent to 347,135 units sold. BYD is the leader with 70,500 sales, while brands such as Jaecoo, Omoda, Leapmotor, and Xpeng are also showing rapid growth.
The growth of Chinese manufacturers in Europe is occurring against the backdrop of a general trend towards electrification and the search for alternatives to traditional European brands. Many buyers are increasingly paying attention to the affordability, technology, and design of Chinese EVs, creating additional pressure on local manufacturers. Furthermore, the possibility of localizing production directly in the EU could significantly reduce the cost of cars for the end consumer, further strengthening the competitive advantages of Chinese companies.
