GAC Plans To Build EVs In Europe For The Akali EU Tariffs

GAC made its debut at the Paris Auto Show 2024. (Doc. GAC Motor)

JAKARTA - Automotive manufacturer from China, GAC confirmed it is exploring all possibilities to assemble electric vehicles (EVs) in Europe to avoid EU tariffs and increase sales volume.

Launching from Reuters on Tuesday, October 15, the company plans to launch its first electric SUV on the blue continent adapted for market needs.

The manufacturer based in Guangzhou, China still views Europe as an important market even though the region implements an EV tariff system that has an impact on them.

"The tariff problem clearly has an impact on us. However, all of this can be overcome in the long term and I'm sure there will be a way to solve everything," said GM GAC International Business, Wei Heingang.

The manufacturer said discussions on EV assembly in Europe were still in the early stages and they were still considering all possibilities, first building a new factory, second sharing with other brands, and third taking over existing factories.

"Local production in Europe will be one way to circumvent EU rates, we are very active exploring this possibility," Wei Heingang added.

GAC plans to market a compact SUV called AION V which is exhibited on this year's Paris Motor Show. The car is planned to arrive at the European market from mid-2025.

AION V has a distance capability of up to 520 km at a fairly affordable price, estimated at less than 40,000 euros or equivalent to IDR 679.6 million. After launching the model, GAC intends to increase its ranks in the region by introducing an electric hatchback by the end of 2025.

The move taken by GAC is expected to meet their target of reaching 500,000 overseas sales units by 2030.