Chinese automotive giant GAC is exploring the possibility of producing electric vehicles (EVs) in Europe as a response to the European Union's proposed tariffs on Chinese-made EVs, the company’s general manager for international business told Reuters on Sunday. This move is part of GAC's broader strategy to navigate regulatory challenges and increase its presence in the European market.
Speaking ahead of the Paris Auto Show, Wei Heigang, GAC's international business chief, emphasized that while the potential tariffs present a hurdle, the company remains optimistic about long-term solutions. “The tariffs issue definitely has an impact on us. However, all this can be overcome in the long term,” Wei noted. He added that local manufacturing is under active consideration as a way to sidestep the additional costs associated with tariffs.
GAC is currently in the early stages of evaluating how to establish a production presence in Europe. The company is weighing options, including building a new factory or acquiring or sharing an existing plant. Although no final decisions have been made, the exploration highlights GAC’s commitment to expanding into Europe, a market it views as "relatively open," despite the tariff challenges.
As part of its European strategy, GAC will unveil the Aion V, a compact electric SUV, at the Paris Auto Show. This vehicle, designed specifically for the European market, boasts a range of 520 kilometers (323 miles) and is expected to hit select European markets by mid-2025. The SUV will be priced below €40,000 ($43,748), though the exact pricing has yet to be finalized. Following this launch, GAC plans to introduce a smaller electric hatchback to Europe by late 2025.
GAC, one of China’s largest car manufacturers, has set ambitious global targets, aiming to achieve 500,000 overseas sales by 2030. While it does not yet sell EVs in Europe, the company views the region as a critical market for its future expansion.
With European regulators pushing for stricter emissions standards and local manufacturing becoming increasingly important, GAC’s move to potentially establish production within the EU could help the company mitigate tariff-related risks and strengthen its competitive position in the region.
