GAC expands its European footprint through vehicle manufacturing partnership with Magna

Shanghai (Gasgoo)- GAC Group announced on 21 November that it will begin full-vehicle production in Europe through a new partnership with Magna, marking a pivotal step in the Chinese automaker's plan to localize manufacturing across the region. The move strengthens GAC's broader efforts to accelerate its electrification strategy while simultaneously extending its production, supply chain and commercial operations into Europe.

According to the companies, mass production of GAC's AION V all-electric SUV has already started at Magna's Graz facility in Austria, signaling that the partnership is well underway.

Photo source: Magna

Wei Haigang, general manager of GAC International, described Europe as a centerpiece of the group's international strategy. He noted that working with Magna enables GAC to deliver locally assembled EVs to European consumers, a crucial step for the brand's long-term competitiveness in the region.

Roland Prettner, president of Magna's Complete Vehicle business, said the collaboration reflects GAC's confidence in Magna's engineering and manufacturing capabilities. He added that the Graz plant's combination of flexibility and production capacity enables automakers such as GAC to advance their European localization strategies with greater efficiency and reliability.

Magna's Graz plant is known for its operational expertise and highly flexible production lines capable of assembling internal-combustion, hybrid and fully electric vehicles simultaneously. With more than 125 years of complete-vehicle experience, the company has helped develop over 40 vehicle programs and produced more than four million vehicles worldwide.

Notably, Magna revealed in September that XPENG had selected the same Graz plant to assemble two new models, with mass production scheduled to begin in the third quarter of 2025. The XPENG program marked the first time a Chinese automaker entrusted the facility with full-vehicle assembly.

For nearly two decades, Magna has supported Chinese automakers with full-vehicle engineering, and since 2018 it has expanded to manufacturing and assembly services within China. The new collaboration with GAC, following XPENG's earlier decision, highlights the determination of Chinese EV makers to deepen their European presence. It also reinforces Magna's standing as a global leader in contract manufacturing, offering a viable pathway for Chinese brands seeking localized production as they scale internationally.