Headlines
Magna to produce China's GAC electric vehicles in Europe
Published by Global Banking & Finance Review®
Posted on November 21, 2025
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 21, 2025
1 min readLast updated: January 20, 2026
GAC's AION V electric vehicles will be manufactured in Europe by Magna to avoid EU tariffs on China-made EVs.
By Nora Eckert
DETROIT (Reuters) -China's Guangzhou Automobile Group (GAC) will build its electric AION V model at a Magna facility in Austria, the two companies said on Thursday, a strategy that should help GAC avoid the EU's tariffs on China-made EVs.
The GAC vehicle will be produced at Magna's facility in Graz, Austria, which can make gasoline-powered, hybrid and electric vehicles on shared lines.
Last year, the EU introduced provisional tariffs of up to 37.6% on China-made EVs, describing their imports as a potential flood of unfairly subsidized EVs.
“Europe is a vital market in GAC’s global development,” said Wei Haigang, president of GAC International.
Roland Prettner, president of the Magna Steyr contract manufacturing business, said its expertise will allow automakers like GAC to localize production efficiently.
The GAC deal comes after Magna said in September it would build battery-powered models for XPeng at the same Graz facility.
(Reporting by Nora Eckert in Detroit; Editing by Sonali Paul)
An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of gasoline or diesel. EVs use electric motors and batteries to operate, offering a more environmentally friendly alternative to traditional vehicles.
Contract manufacturing is an arrangement where a company hires another company to produce its products. This allows businesses to focus on design and marketing while outsourcing production to specialized manufacturers.
Localization in manufacturing refers to the process of adapting products to meet the specific needs and regulations of a local market. This can include changes in design, production methods, and compliance with local laws.
A hybrid vehicle is a type of vehicle that uses more than one form of power to operate, typically combining an internal combustion engine with an electric motor. This design aims to improve fuel efficiency and reduce emissions.
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