Key Points
- GAC is considering manufacturing EVs in Europe to avoid EU tariffs on Chinese-made cars. The company aims for 500,000 overseas sales by 2030.
- GAC will debut its Aion V electric SUV at the Paris Auto Show, with a mid-2025 European launch. Aion V will range 520 kilometers and be priced under €40,000.
- GAC is in early discussions about establishing a local production facility in Europe.
- The company also plans to release a small electric hatchback in Europe by late 2025.
Chinese state-owned automaker GAC is considering manufacturing electric vehicles (EVs) in Europe to avoid potential tariffs imposed by the European Union. The company’s general manager for international business, Wei Heigang, revealed this development in an interview with Reuters on Sunday. GAC is joining a growing number of Chinese automakers exploring local European production in response to EU trade measures.
GAC, one of China’s largest car manufacturers, has set an ambitious target of 500,000 overseas sales by 2030. While GAC currently does not sell EVs in Europe, the company plans to introduce its first electric SUV specifically tailored to the European market at the Paris Auto Show. This vehicle, known as the “Aion V,” is expected to be available in select European markets by mid-2025.
Despite the European Commission’s move to impose tariffs on Chinese-made EVs, Wei remains optimistic about GAC’s future in Europe. Speaking from Paris ahead of the auto show, he emphasized that Europe remains a crucial and “relatively open” market for the company. Wei acknowledged the challenges posed by tariffs but expressed confidence in finding long-term solutions, including the possibility of establishing local manufacturing operations.
“Local production would be one of the ways to resolve this,” Wei said, adding that GAC is “very actively exploring this possibility.” The company is in the early stages of discussions regarding how to enter the European manufacturing market. According to Wei, GAC is considering several options, including building a new plant or collaborating with—or even acquiring—an existing production facility.
The Aion V, GAC’s flagship electric SUV, boasts a range of 520 kilometers and is expected to be priced at under €40,000 ($43,748). While the final price has not been confirmed, this pricing strategy is designed to appeal to European consumers looking for affordable EV options. After the Aion V’s launch, GAC plans to introduce a small electric hatchback to the European market by the end of 2025.
As GAC and other Chinese automakers expand their global presence, local European production may become a key strategy for navigating trade barriers and competing in the region’s rapidly growing EV market.
