China’s GAC looks at building cars in Europe as tariffs loom

Chinese state-owned carmaker GAC is exploring the manufacture of electric vehicles (EVs) in Europe to avoid EU tariffs, the general manager of its international business told Reuters on Sunday, joining a growing list of Chinese companies planning local production.

The company is among China’s largest carmakers and is targeting 500,000 overseas sales by 2030. It does not yet sell EVs in Europe but will launch an electric SUV tailored to the European market at the Paris Auto Show, kicking off on Monday.

GAC still viewed Europe as an important market that was “relatively open” despite moves by the European commission to impose tariffs on EVs made in China, Wei Heigang said, speaking in Paris ahead of the show.

“The tariffs issue definitely has an impact on us. However, all this can be overcome in the long term.... I am positive there is going to be a way to get it all resolved,” he said.

“Local production would be one of the ways to resolve this,” he added. “We are very actively exploring this possibility.”

Discussions were at a very early stage and the company was still considering whether to build a new plant or share — or take over — an existing one, according to Wei.

The compact SUV on display in Paris, a 520km range vehicle called Aion V, should launch in some European markets in mid-2025, priced at less than €40,000 (R760,000) though the final price had not yet been set, GAC said.

After that launch, the next GAC vehicle due for sale in Europe will be a small electric hatchback, to be released in late 2025.

Reuters