GAC aims to increase production in Europe. It plans to have 12 models in France by 2030.
The Chinese state-owned company GAC has started selling the Aion V and Aion UT in France, aiming to introduce 12 electric and hybrid vehicles there by 2030. The brand is also considering expanding its European production capacity, currently utilizing the Magna Steyr facility in Graz, Austria.
GAC is already present in countries such as Poland, the United Kingdom, Finland, Greece, Spain, and Portugal. However, France is set to be one of the markets where the company does not want to rely solely on a few imported models.
Aion V and UT are assembled in Austria
The Aion V is an electric SUV, while the Aion UT is a compact hatchback. Both models are assembled in Graz using the CKD method, which involves sending parts and components from China for final assembly in Europe.
This is not full local production with a European supply chain. The chassis, batteries, and most components are still manufactured in China, with Austria handling the final assembly. However, such a model could change the way EU tariffs are applied to electric vehicles from China, depending on the actual local value added and the vehicle’s tariff classification.
Xpeng has already benefited from a similar approach, having commissioned a plant in Graz to assemble the G6 and G9 models. For Chinese brands, this is a fast way to establish a presence in Europe without having to build a factory from scratch at a cost of several billion euros.
Cedric Lacour, deputy CEO of GAC France, told Reuters that the company intends to stay in Europe for the long term, which “naturally means having production capacity.” GAC is considering further cooperation with Magna but does not rule out other partners as well.
200 Dealers in France in Four Years
Meanwhile, GAC is building its sales network in France. The plan calls for 200 dealerships within four years, with 50 set to open this year. This is an ambitious pace, especially for a brand that is just making its debut on the Seine.
For comparison, BYD has been operating in France since 2024 and aims to have 250 sales outlets by the end of next year according to Automobile Magazine. So GAC isn’t starting first, but it’s trying to catch up through a wider range of models and a larger dealer network.
The company also has an European R&D center in Milan. In the first half of the year, GAC’s exports increased by 35.69% year-on-year to 346,000 vehicles. Growth was driven mainly by the Americas and Southeast Asia, though in Greece the brand ranked second among Chinese EV manufacturers.
For Polish customers, what’s most interesting isn’t the French salon plan itself, but whether assembly in Europe will lead to better availability of parts and more reasonable prices for Aion models. For now, GAC is establishing footholds rather than a full-fledged European factory. Will 12 models be enough to stand out among BYD, MG, and Xpeng?
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