China's GAC looks to add car production capacity in Europe

GAC Targets Increased Car Production Capacity in Europe for Market Growth

GAC's Expansion Strategy and Market Entry in Europe

Production Capacity Plans

PARIS, Sept 21 (Reuters) - Guangzhou Automobile Group aims to add production capacity in Europe to bolster its planned large-scale roll-out of cars in major markets like France, GAC France's deputy chief executive, Cedric Lacour, said on Monday. 

The Chinese auto maker's partner, Magna, currently produces the vehicles sold in Europe, where GAC has also expanded to Finland, Greece, Poland, Portugal, Spain and the United Kingdom.

Collaboration with Magna and Other Investors

"We are currently looking into production capacity in Europe, both with Magna and with other investors," Lacour told Reuters on the sidelines of an event in Paris where GAC unveiled the compact EVs Aion UT and Aion V, its first two cars for the French market.

 "We really want to establish a long-term presence here (in Europe), which automatically means we need production capacity," he said.

Product Launches and Dealership Expansion

Electric and Hybrid Model Roll-out

GAC plans to have launched 12 electric and hybrid models in France by 2030, Lacour said during a presentation, adding the auto maker also plans to operate 50 dealerships in France this year, rising to 200 by 2030.

Scaling Up Operations

"Our goal is to take a brand from launch to scaling up in just four years," he said.

Market Timing and Industry Trends

Entry Timing and Competitive Position

Asked if GAC, founded in 1997, was late and trailing some rivals in coming to Europe, Lacour said it was "entering the market at just the right time". 

Growth of Electric Vehicle Market in France

In July and August, EVs reached record shares of new car registrations of 35% and 38% in France, boosted by higher fuel prices linked to the Iran war. 

Reporting Credits

(Reporting by Gilles Guilhaume, Writing by Dominique Vidalon, editing by Inti Landauro and Jonathan Spicer )