Guangzhou Automobile Group (GAC) of China has started production of its AION V electric SUV at Magna’s facility in Austria. The initiative is part of GAC’s broader strategy to expand local electric vehicle (EV) production in Europe.
GAC International President Wei Haigang stated that Europe is a key market for the company’s global development.
“Partnering with Magna enables us to bring locally assembled electric vehicles to European customers that reflect GAC’s values of smart technology, sustainability, and craftsmanship,” he added.
The AION V will be manufactured at Magna’s Graz facility in southern Austria, where combustion, hybrid, and electric vehicles are built on integrated assembly lines.
Beyond vehicle assembly, the collaboration also encompasses supply and sales operations.
The facility has contributed to the development of over 40 vehicle models and has produced more than four million vehicles for international markets.
“This collaboration reflects the trust automakers place in Magna’s expertise. Our Graz facility provides flexibility and capacity, allowing OEMs like GAC to localize production efficiently and confidently,” Roland Prettner, president of Magna Steyr’s contract manufacturing business, said.
The AION V has already entered the markets in Finland, Poland, and Portugal. GAC plans to expand into more European countries by forging new partnerships and setting up service and sales networks across the region.
The development follows a comparable agreement that Magna previously established with Xpeng, another Chinese EV maker.
GAC has also outlined its ambitions for Australia. The company recently hosted a brand and model launch in Sydney to unveil its Australia Local Strategy—’GAC: Growing Australian Confidence’—which it positions as the regional adaptation of its global ‘One GAC 2.0’ initiative.
GAC stated that, through long-term strategic investments, it plans to integrate into the Australian market and regards the launch as a key milestone in its expansion across Australia and the wider South Pacific.
At the Sydney event, the company introduced three global models for the region: the AION V SUV, the M8 PHEV—billed as Australia’s first plug-in hybrid MPV—and the EMZOOM.
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