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GAC plans European assembly capacity as it pushes into France with two BEVs

GAC is evaluating local production options in Europe, including with partner Magna, as it targets 12 electric and hybrid models in France by 2030 and a network of 200 dealers.

Chinese automaker GAC is evaluating plans to add vehicle assembly capacity in Europe, according to Reuters, as it prepares to launch a broad line-up of battery-electric and hybrid models in France and other core markets.

Cedric Lacour, deputy chief executive of GAC France, said at a Paris event that the company is assessing local production options with partners including Magna, which currently builds GAC vehicles for the European market under contract. "We want to build a long-term presence in Europe, and that necessarily means local production capacity," he told Reuters.

Twelve models in France by 2030

At the event, GAC unveiled two compact battery-electric models developed specifically for the French market, the Aion UT and the Aion V. Lacour said the company plans to offer 12 electric and hybrid models in France by 2030, expanding its dealer network from 50 outlets this year to 200 by the end of the decade. "Our goal is to go from market entry to significant scale in just four years," he said.

GAC's European operations already cover Finland, Greece, Poland, Portugal, Spain and the UK, according to the company. Asked whether the 1997-founded group was late to Europe compared with some rivals, Lacour said the timing was "just right."

The push comes as electric vehicles take an unusually large share of French new-car registrations: EVs accounted for 35% of registrations in July and 38% in August, both record highs, partly because rising fuel prices linked to the situation in Iran boosted demand for electric models, according to the report.

Production options under review

GAC has not specified which European country could host the new capacity, nor confirmed a timeline. The company said it is in talks with Magna and other potential investors. Magna has been GAC's manufacturing partner for European deliveries, a common arrangement for Chinese brands seeking to avoid import duties and shorten delivery times.

The announcement follows a wave of Chinese EV makers moving assembly closer to European customers, as tariffs on China-built electric cars and logistics costs reshape supply chains. GAC, which sells under the GAC and Aion brands, has been slower than some rivals such as BYD and MG to build a European retail footprint, but the French plan signals a more aggressive phase.

According to GAC's presentation, the French line-up will span both battery-electric vehicles (BEVs) and plug-in hybrids, though the company did not disclose pricing or range figures for the Aion UT and Aion V at the event. GAC said it aims to have its brand established in France before scaling up across the region.