The Chinese company Guangzhou Automobile Group (GAC) will produce its AION V electric vehicles at the Magna plant in Graz, Austria, which will allow the company to avoid EU duties of up to 37.6% on Chinese-made electric vehicles, Reuters reports. The Graz plant, capable of producing models with internal combustion engines, hybrid and electric models on common lines, offers GAC an effective way to localize production in Europe.
GAC International President Wei Haigan called Europe a "vital market" for the group's global expansion. Roland Prettner, President of Magna Steyr, noted that the company's expertise in contract manufacturing allows automakers such as GAC to expand locally with less risk.
This deal is a follow-up to Magna's recent deal to produce XPeng electric vehicles at the same factory, underscoring the growing role of Graz as a European hub for Chinese electric vehicle brands seeking duty-free access to the EU market.
