Chinese automaker GAC said on Thursday it has started assembling its Aion UT compact hatchback in Europe, becoming the state-owned brand’s second model on the Old Continent.
As it increases focus on international markets, the Guangzhou-based company partnered late last year with the Canadian parts supplier and manufacturer Magna to assemble vehicles at the Graz plant in Austria.
Assembling in Europe allows GAC to avoid the extra tariffs imposed by the European Commission in October 2024.
Depending on the collaboration of each carmaker with the investigation, extra duties range between 7.8% for Tesla and 35.3% for SAIC Motors.
The GAC Aion V — which secured a five-star Euro NCAP safety rating — debuted in Finland, Poland, and Portugal last year.
Magna — one of the largest automotive suppliers globally — collaborates with several automakers at its Graz operation and is capable of producing internal combustion, hybrid, and EVs on shared lines.
Automakers Producing in Graz
Last year, the Ontario-headquartered firm expanded its partnerships with Chinese brands looking to produce electric vehicles in Europe.
GAC and XPeng — both headquartered in Guangzhou — announced they were assembling vehicles with the manufacturer in November.
XPeng said then that the first batch of G6 and G9 SUVs had already “successfully rolled off the production line” and that the plant would be assembling additional models “in the future.”
Earlier this year, following the simultaneous debut of its new P7+ sedan across 36 markets, the company revealed that it had completed test production of the model at Magna Steyr’s plant.
The company produces several models from German legacy automakers BMW and Mercedes-Benz.
Additionally, Japanese automaker Toyota has also manufactured vehicles in Graz, with the Toyota GR Supra being produced at the Magna Steyr plant since 2019.
The company confirmed last October that production of the model would end in 2026, after initial reports in late 2024.
Jaguar manufactured its I-Pace and E-Pace models there until 2024 — when it halted production of all its vehicles amid a brand-wide relaunch.
The factory was also responsible for manufacturing the Fisker Ocean SUV, before the company filed for Chapter 11 bankruptcy in mid-2024.
Aion UT
The Aion UT hatchback was designed specifically for the European market “in terms of usability, driving experience, and intelligent electric mobility,” according to GAC.
Delivering a range of up to 430 km (267 miles) under the WLTP cycle, it supports fast charging from 30% to 80% in 24 minutes on a DC charger.
The Aion UT will compete with other Chinese electric hatchbacks already on sale in Europe, including BYD‘s Dolphin Surf — which launched across the continent nearly a year ago — and the debut model of Nio‘s sub-brand Firefly.
GAC is expected to disclose European pricing details for the model in mid-April.
In China, the Aion UT launched a year ago at between 69,800 and 101,800 yuan ($10,100—$14,700).
It is positioned just slightly above the BYD Seagull — the Dolphin Surf’s domestic equivalent — which starts at around 63,800 yuan ($9,200).
The Firefly EV, produced by premium EV maker Nio, is priced slightly higher at 119,800–137,800 yuan ($17,300–19,900).
In Europe, the BYD Dolphin Surf begins at approximately €20,000 to €25,000 ($23,100–28,900) depending on market and VAT, while the Firefly EV is priced at €29,900–32,500 ($34,500–37,500).
