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China’s GAC turns to Magna to dodge EU tariffs with Aion V EV build

tiencars by tiencars
21/11/2025
in World
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China’s GAC turns to Magna to dodge EU tariffs with Aion V EV build
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GAC has begun local assembly of its Aion V electric SUV in Europe under a new partnership with contract manufacturer Magna at the latter’s plant in Graz, Austria.

The programme is meant to speed up GAC’s electric-vehicle rollout in Europe while adding local content in production, supply and sales.

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It also helps GAC avoid the European Union’s extra tariffs on China-made EVs.

Magna would assemble the Aion V on shared lines that can also build internal combustion, hybrid and other electric models.

“Europe is a vital market in GAC’s global development,” said GAC International president Wei Haigang.

“Partnering with Magna enables us to bring locally assembled electric vehicles to European customers that reflect GAC’s values of smart technology, sustainability and craftsmanship.”

The Aion V, which holds a five-star Euro NCAP rating, has already been introduced in Finland, Poland and Portugal, with more markets to follow as GAC signs new distribution and service partners.

Magna’s Graz operation has more than a century of vehicle-building experience, has developed over 40 models and produced more than 4 million vehicles worldwide. It has also agreed to build electric SUVs for Chinese brand Xpeng at the same site, underlining its growing role as a European base for Chinese EV makers.

“This collaboration reflects the trust automakers place in Magna’s expertise. Our Graz facility provides flexibility and capacity, allowing OEMs like GAC to localise production efficiently and confidently,” said Magna Complete Vehicles president Roland Prettner.

Tags: Aion V electric SUVGAC InternationalGrazMagna
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