Chinese state-owned conglomerate Guangzhou Automobile Group (GAC) has taken a decisive step toward Europe by unveiling the Aion V crossover-SUV and the Aion UT hatchback in France. The two models serve as the opening act of a wider plan to introduce a total of 12 electric and hybrid vehicles to the French market by the end of the decade. While the brand already sells cars in the United Kingdom, Finland, Greece, Poland, Spain and Portugal, the French launch signals a concerted effort to turn a foothold into a full-scale presence.
Building a European manufacturing base
GAC currently assembles its Austrian-made vehicles at the Magna Steyr plant in Graz using a knock-down assembly process: components are produced in China, shipped to Europe, and finalised on the assembly line there. This approach helps sidestep the EU’s import duties on fully built Chinese cars. Cedric Lacour, deputy CEO of GAC France, emphasized that expanding this capability is essential. “We really want to establish a long-term presence here (in Europe), which automatically means we need production capacity” he told Reuters. The company is evaluating further collaborations with Magna Steyr or other investors to enlarge its European output.
French market strategy and dealer network
The French rollout is more than a product debut; it is a blueprint for rapid scaling. GAC intends to open 50 dealerships in France in 2026 and grow that figure to 200 outlets by 2030. By comparison, rival BYD, which entered France in 2024, targets 250 stores by the end of next year. Lacour rebuffed suggestions that GAC is late to the European party, asserting, “Our goal is to take a brand from launch to scaling up in just four years.” The company believes the timing aligns with a surge in French electric-vehicle registrations, which reached 35 % in and 38 % in August 2026.
Financial pressures and the need for growth
GAC’s expansion comes at a moment of financial strain. Revenue fell to CNY 96.54 billion in fiscal 2025, down from CNY 107.78 billion the year before, and the group swung from a profit of CNY 823.58 million in 2024 to a loss of CNY 8.78 billion in 2025. Gross profit turned into a loss of CNY 3.25 billion, while operating cash flow was negative CNY 15.03 billion. With a market capitalization of CNY 43.48 billion and a stable share price of CNY 5.09 as of 22 September 2026, investors are watching the European push as a potential catalyst to reverse the downturn.
R&D, sales momentum and outlook
Beyond factories, GAC has established a dedicated European research and development centre in Milan, underscoring its commitment to local innovation. Export sales rose by 35.69 % year-on-year in the first half of 2026, reaching 346,000 units, driven largely by strong demand in the Americas and Southeast Asia. In Greece, GAC ranked second among Chinese EV brands, highlighting its growing brand recognition on the continent. If the company can synchronize its dealer expansion, new-model pipeline, and increased production capacity, it could transform France into a cornerstone of its global EV strategy.
