GAC Group to Produce Two Electric Vehicles for European Market at Magna Steyr Plant

According to foreign media reports, sources have revealed that GAC Group will start producing two pure electric vehicle models at Magna Steyr's factory in Austria this week to supply the European market.

Aion V; Image source: GAC Group

Magna will produce the Aion V mid-size SUV and Aion UT compact hatchback at its factory in Graz, Austria. This move will help GAC Group avoid the additional tariffs imposed by the European Union on electric vehicles made in China.

One source stated that GAC Group will transport components from China to its factory in Austria; nevertheless, the added value generated by local assembly is sufficient to exempt these models from paying EU tariffs.

The cooperation between GAC Group and Magna is expected to be officially announced this week. On September 8, at the IAA MOBILITY 2025 in Germany, GAC Group launched the Aion brand for the European market. GAC Group revealed that sales will begin this month in Poland, Portugal, and Finland, and plans to achieve full coverage of the European market by 2028.

The Aion V will compete with models such as the Volkswagen ID.4, Škoda Enyaq, and Peugeot e-3008.

GAC Group stated that according to the WLTP (Worldwide Harmonized Light Vehicles Test Procedure) standard test, the Aion V has a range of up to 520 kilometers (approximately 323 miles). This model is equipped with 400-volt fast charging technology, and for a 75 kWh battery, it can charge from 30% to 80% in 20 minutes.