GAC deepens Europe push as AION UT enters production at Magna plant

Gasgoo Munich- GAC Group’s AION UT model has gone into production at Magna’s Graz facility in Austria, according to an announcement Magna issued on March 26 via its WeChat account.

Image source: Magna

The model becomes the second GAC vehicle to roll off the plant’s lines following the earlier launch of the AION V, underscoring a deepening manufacturing partnership between the two companies and providing fresh momentum for GAC’s expansion across the region.

The collaboration was formally announced in November 2025, when GAC Group and Magna outlined plans to localize vehicle production in Europe. The initiative forms part of GAC’s broader strategy to scale up its regional manufacturing footprint, accelerate electrification, and build out an integrated presence spanning production, supply chains, and sales.

At the time of the announcement, mass production of the AION V electric SUV had already commenced at the Graz site, laying the groundwork for subsequent models such as the newly launched AION UT.

Wei Haigang, GAC INTERNATIONAL’s general manager, previously described Europe as a cornerstone of the company’s global strategy, with localized assembly seen as critical to improving market access and responsiveness to regional demand.

Magna’s Graz facility is widely recognized for its operational flexibility, capable of assembling internal combustion, hybrid, and fully electric vehicles on shared production lines. Backed by more than a century of engineering experience, the company has developed over 40 vehicle programs for clients and produced more than four million vehicles globally.

The Graz plant is also becoming a hub for Chinese automakers entering Europe. In September 2025, Magna revealed that XPENG had selected the site to assemble two new models, with production scheduled to begin in the third quarter. The move marked the first time the Austrian facility had taken on full vehicle assembly for a Chinese OEM.

Over the past two decades, Magna has maintained close ties with China’s automotive industry, initially through engineering services and, since 2018, through localized manufacturing and assembly operations within China. Its recent collaborations with GAC and XPENG in Europe represent an extension of that relationship across continents, offering a practical blueprint for Chinese EV makers seeking to globalize through localized production.