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The Aion V, showcased at GAC’s IAA Mobility auto show stand in Munich, Germany on September 9, 2025, represents a key component of the automaker’s ambitious European expansion strategy.
Guangzhou Automobile Group (GAC), a state-owned Chinese automotive giant, is aggressively targeting the European electric vehicle (EV) market, aiming for a staggering 17-fold increase in sales within the next two years. This ambitious move positions GAC as the latest Chinese contender vying for market share against established European automakers.
The intensifying competition in the European EV sector has already witnessed significant interest from Chinese manufacturers, including BYD and Xpeng. GAC’s entry is poised to further pressure European stalwarts like BMW and Mercedes, who are striving to maintain their dominance through the development and introduction of their own compelling electric vehicle offerings.
“Europe represents one of our five key strategic markets. We anticipate a substantial portion of our overseas sales to originate from Europe in the future,” stated Wei Haigang, President of GAC International, during an interview at the IAA Mobility auto show.
GAC projects European sales of approximately 3,000 vehicles this year, followed by a significant increase to 15,000 units in 2026 and a minimum of 50,000 units by 2027. This projection underscores the company’s commitment to establishing a strong foothold in the European market.
At the IAA show, GAC featured its all-electric Aion V and Aion UT models. In addition to these fully electric vehicles, the company also plans to introduce a plug-in hybrid vehicle to the European market in the future, broadening its product portfolio to cater to diverse consumer preferences.
While the projected growth figures are ambitious, they reflect a broader trend of increasing Chinese presence in the European EV landscape. According to data from Jato Dynamics, the market share of Chinese car brands in Europe nearly doubled in the first half of the year compared to the same period last year. Though the overall market share remains relatively small, exceeding 5%, the rapid growth rate signals a significant shift in the competitive dynamics.
Despite the European Union’s imposition of tariffs on Chinese-made EVs, GAC remains resolute in its expansion plans. The company is actively exploring the possibility of establishing local manufacturing facilities within Europe to mitigate the impact of tariffs and enhance its responsiveness to local market demands.
“We hope that the Chinese government and the European Union will continue to negotiate to reduce tariffs,” Wei commented. “Looking ahead, we aim to accelerate manufacturing localization. By establishing manufacturing capabilities within Europe, we can better serve the European market.” This commitment to localization underscores GAC’s long-term vision for sustainable growth in the European market. The decision could significantly impact the supply chain and potentially lead to job creation within the EU, further solidifying GAC’s role in the European automotive ecosystem.
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Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/8965.html
