Magna Steyr only began producing the mid-size SUV GAC Aion V in Graz last November. Just five months later, the smaller Aion UT has followed suit. This development was reported by the portal CN EV Post, citing official statements from Magna. The collaboration stems from a comprehensive cooperation agreement signed between GAC and Magna in November 2025, which at the time already extended beyond the Aion V.
The Aion UT is a battery-electric compact car currently manufactured in China and Thailand. It has been available in its home market since March 2025. Earlier this month, the model made its debut at the Motion Expo automotive trade fair in Graz, Austria. Read our test drive review here.
It had already become clear that the model would also be produced at Magna Steyr. In December 2025, an official GAC announcement revealed that the company would use LFP batteries from Farasis Energy for its European models. The Aion UT was mentioned alongside the Aion V as a target model for the battery supply, indirectly confirming that the battery-electric compact car would also be built locally in Europe.
The Farasis battery cells are large-format pouch cells with lithium iron phosphate (LFP) chemistry. According to the partners, the total order capacity exceeds 10 GWh, which, in purely mathematical terms, is sufficient for around 100,000 electric vehicles with 100 kWh batteries. However, the exact size and capacity of the batteries remain unknown.
Meanwhile, Magna’s Austrian plant is increasingly becoming a production hub for Chinese automakers expanding into Europe. Since September, the Magna facility has also been assembling the Xpeng G6 and G9 models. By producing vehicles in Europe, Chinese manufacturers avoid the EU’s additional tariffs, which would otherwise apply to electric cars imported from China into the European Union.
Importantly, Magna is responsible solely for vehicle production, while distribution of GAC’s electric vehicles is handled by the Chinese company itself. “GAC plans to expand into further European markets through new partnerships as well as service and distribution networks,” it was stated in December. However, the Canadian group did not specify which markets are being targeted or what production capacities GAC has secured at Magna.
The Magna vehicle plant in Graz operates mixed production lines, where internal combustion engine vehicles, hybrids, and electric cars are manufactured side by side. Well-known electric models from the plant include the Jaguar I-Pace and, briefly, the Fisker Ocean (both discontinued), as well as the current Mercedes G-Class with EQ technology and the two Xpeng models. On the internal combustion engine side, the BMW Z4 and Toyota Supra remain in production.
