GAC is moving production of the Aion V SUV, destined for the European market, to Magna's Austrian plant

Magna Steyr has started series production of the GAC Aion V electric SUV at its Graz plant, located in Austria. The move aims to get around the special tariffs imposed by the European Union on electric vehicles imported from China. Until now, the Aion V reached countries such as Finland, Poland or Portugal directly from GAC’s Chinese plants, but this will change from now on.

The Aion V is a mid-size SUV aimed at everyone looking for a practical vehicle at a moderate price. Although it does not have the latest technology like some of its rivals, it nevertheless offers respectable technical specifications, generous equipment and, all things considered, a price that makes it one of the most attractive options on the market for many European customers.

At the Graz plant, Magna is solely responsible for assembling the vehicle, while GAC will directly manage its sales and the entire after-sales network. Producing the Aion V in Graz will also allow the Chinese manufacturer to expand its presence into more European countries through new commercial alliances, although which countries these will be has not yet been specified.

Magna Steyr has become a go-to solution for many manufacturers

Magna’s Austrian plant is one of the most flexible on the continent. The same production lines turn out vehicles from different brands with different powertrains, whether combustion, hybrid or pure electric. Among the electric models that have recently passed through, or are passing through, there are the Jaguar I-Pace, the now discontinued Fisker Ocean, the electric version of the Mercedes G-Class and, since just a few months ago, the Xpeng G6 and G9. Likewise, combustion-engined models are also built at this plant, such as the BMW Z4 and the Toyota GR Supra.

Following the announcement, GAC highlighted the importance of the European market in the company’s global strategy, adding that the alliance with Magna will allow them to offer European customers locally assembled electric vehicles of the highest quality and at an accessible price.

With this new agreement, Magna strengthens its position as the preferred partner for all those Chinese brands seeking to establish themselves in Europe without suffering the impact of tariffs, but which do not yet have the capacity to open their own production plants on the continent. In this way, Graz is consolidating its position as one of the most important production centers for Chinese electric vehicles on the continent.