GAC Begins AION V Electric SUV Production in Austria to Mitigate EU Tariffs

Post by : Bianca Suleiman

Guangzhou Automobile Group (GAC) from China has announced a significant move to enhance its European market presence by setting up production of its AION V electric vehicle in Austria. This assembly will occur at the known Magna facility in Graz, which already caters to various gasoline, hybrid, and electric vehicle productions. This shift allows GAC to supply the European region without depending on manufacturing in China.

This decision comes in light of the European Union's recent tariffs, reaching as high as 37.6%, imposed on electric vehicles brought in from China due to concerns related to subsidies and the increase in EV exports. By relocating production to Europe, GAC avoids these additional costs, thereby maintaining its competitiveness amid escalating demand for electric vehicles across the continent.

Magna's Graz plant is a well-established contract manufacturing site for global automakers and its adaptable production capabilities allow for simultaneous manufacturing of diverse vehicle types. Additionally, this collaboration comes after Magna revealed plans to assemble battery-operated vehicles for XPeng at the same plant, further establishing Graz as a pivotal center for electric vehicle assembly.

With the AION V slated for production in Austria, GAC secures an important position within Europe’s automotive sector, highlighting a larger trend of Chinese electric vehicle manufacturers aiming to localize their operations in response to evolving trade regulations.