Guangzhou Automobile Group, better known as GAC, is positioning itself to join the growing list of Chinese carmakers setting up shop in Europe to sidestep rising import tariffs. The company has also chosen an established partner to make it happen, teaming up with contract manufacturer Magna to handle production.

GAC has confirmed that its all-electric Aion V will be built at Magna’s facility in Graz, Austria. Over the years, this plant has built several models for a variety of carmakers, including the Mercedes-Benz G-Class, Jaguar I-Pace and E-Pace, BMW 5-Series, BMW Z4, and even the Toyota GR Supra.

Read: Does The New Aion V Electric SUV Remind You Of A T-Rex? GAC Thinks So

Recent changes in client contracts have left Magna with open capacity. Several models, including those from Jaguar, have already departed the Graz lines, while agreements with BMW and Toyota will end next year. As a result, the company has been on the lookout for new manufacturing partners.

How Xpeng Does It

Guido ten Brink/SB-Medien

In September, Magna’s Graz facility began assembling Xpeng’s G6 and G9 SUVs for Europe. The process is somewhat unconventional: the vehicles are built in China, partially disassembled, shipped to Austria, then reassembled for final delivery.

This approach lets Xpeng pay tariffs only on parts rather than complete vehicles, a practical workaround in the current trade climate. Whether GAC’s Aion V will follow the same method remains unconfirmed, though the option certainly seems plausible.

The Chinese company unveiled the Aion V in the second quarter of last year and has been enjoying strong sales in recent months. It is underpinned by the firm’s modular AEP architecture and is equipped with an electric motor producing 181 hp.

Buyers can choose between 62 kWh, 75 kWh, and 90 kWh battery packs, the largest offering a CLTC range of up to 466 miles (750 km).

Global Aspirations

It’s too early to say how popular the Aion V will prove to be in Europe, but it certainly has the potential to sell well and appears to be a compelling alternative to the likes of the Geely EX5 and BYD Atto 3.

GAC plans to launch the SUV in more than 30 global markets, including Australia and various European countries, as it continues to expand its international footprint.