China’s GAC Wants To Increase European Manufacturing As It Expands Into France

Chinese automaker GAC (Guangzhou Automobile Group) is ramping up its European footprint with plans to boost manufacturing capacity and roll out 12 new models in France by 2030. Currently, GAC already builds cars in Europe, producing the Aion V crossover-SUV and Aion UT hatchback in knock-down form at the Magna Steyr plant in Graz, Austria, where components are shipped from China for final assembly in Europe to help bypass existing EU tariffs on Chinese vehicles. Cedric Lacour, GAC France Deputy CEO, told Reuters that the company is looking at expanding this European production capacity, potentially through Magna Steyr or other investors, to establish a long-term presence. GAC’s upcoming French lineup will include electric and hybrid offerings by 2030, following the initial introduction of the all-electric Aion V and Aion UT. Beyond Austria, GAC also operates a dedicated European research and development center in Milan. The brand is already available in the UK, Finland, Greece, Poland, Spain, and Portugal, with Greece seeing GAC rank second among Chinese EV brands. Globally, GAC reported a 35.69 percent year-on-year increase in export sales for the first half of this year, reaching 346,000 units, driven largely by the Americas and Southeast Asia. To support its French expansion, GAC plans to open 200 dealerships across France in the next four years, targeting 50 outlets this year alone. While competitors like BYD entered France in 2024 and target 250 outlets by the end of next year, Lacour disputed claims that GAC is late to the party, stating that the brand’s goal is to scale up from launch in just four years and that it is entering the market at the right time.