GAC has begun building its Aion V electric SUV at Magna Steyr’s plant in Graz. While giving the Austrian contract manufacturer fresh volume after a series of wind-downs, this is one of the first actual Chinese passenger cars produced in Europe.
While the Aion V isn’t a common sight on Belgian roads, the midsize electric SUV was previously imported from China to markets such as Finland, Poland, and Portugal.
But as GAC is serious about its European ambitions, it has now entered serial production in Austria. A move with benefits, as it insulates the model from EU tariffs on Chinese-built EVs. Basically, GAC earns more per unit sold in Europe.
All EU markets by 2028
The production start also aligns with the Chinese brand’s broader target of covering the entire European market by 2028, following the brand’s regional debut at the Munich auto show last year.
GAC follows the line of carmakers seeking to kickstart production without the cost or delay of constructing a proprietary plant while relying on the proven quality of the Steyr facility.
Fisker tried to do the same with the Ocean, and brands like BMW and Aston Martin also turned to the Austrian factory to either shift the risk of commercial failure to a subcontractor or temporarily boost capacity.
Looking to the East
The Graz operation has faced a declining workload as contracts for the Jaguar I-Pace, E-Pace, BMW 5 series, and, more recently, the Toyota Supra and BMW Z4, have wound down. But adding GAC alongside Xpeng’s G6 and G9 SUVs—both already in production at the plant—helps stabilize volumes. Symbolically, it illustrates how the legacy manufacturing network in Europe is looking to the East to secure a sound future.
Graz is one of the few European plants able to run internal-combustion models, hybrids, and full EVs on shared lines. This flexibility appeals to emerging entrants trying to minimize risk. In Austria, Magna Steyr relies on more than a century of manufacturing experience and over 4 million vehicles produced.
It’s also a pat on the back for European workers. Recently, the Spanish conversion of a Stellantis factory for Leapmotor in Zaragoza was heavily criticized, as the company is importing workers not only to build the plant but also to run it.
Aion UT to follow suit
The Aion V pitches itself against models such as the VW ID4, Skoda Enyaq, and Peugeot e-3008. It competes in the heart of the market. The European-built model features a 75-kWh battery, a WLTP range of 520 kilometers, and 400-volt fast charging that can bring the pack from 30 to 80 percent in under 20 minutes.
Prices will start around €37,000, depending on the market, with higher-trim versions offering features such as massaging seats and a full-length glass roof.
GAC is also preparing the Aion UT compact hatchback for European production, positioning it against established competitors such as the MG4 and VW ID3, with an expected price below €30,000.
In the wake of EU trade policies, more Chinese brands are expected to follow suit. But whether these local production projects really benefit local employment remains to be seen.
