The state-owned Chinese automotive group GAC finalized its plans to enter the European market. As a Honda and Toyota manufacturing partner, GAC recently confirmed its official entry into the UK with the Aion electric vehicle (EV) lineup, aiming to compete directly in the budget-friendly EV segment. GAC sold over 2 million vehicles last year, positioning itself against established models like the Volkswagen ID.3 and the Tesla Model Y.
GAC’s European strategy involves more than introducing a new model. It will focus on value and practicality rather than entering the market at a premium price point. The UK is viewed as a key market due to its strong EV adoption rate. Over time, GAC intends to broaden its offerings to include hybrids, plug-in hybrids (PHEVs), and internal combustion engine (ICE) models.
GAC plans to launch the Aion UT as the first model in Europe. This hatchback is longer and wider than the Volkswagen ID.3. While it sells for approximately ₤7,500 (approximately $10,000) in China, the UK version is expected to be priced at approximately ₤25,000 (approximately $33,000), accounting for logistics and taxes. The Aion UT features a 134-horsepower motor and a 60 kWh LFP battery, offering a range of up to 267 miles (430 km).
A 14.6-inch touchscreen handles most functions, supported by an 8.8-inch digital cluster. The interior is designed flexibly, allowing the front seats to fully recline and align with the rear seats to form a flat space. While most materials are plastic, details like textured panels and leather-like trim enhance the overall cabin experience.
Aion V: A Mid-Size SUV with Competitive Specs
The Aion V, which will accompany the hatchback into the European market, is a mid-size electric SUV that debuted at the Paris Motor Show last year. It features a 224-horsepower electric motor and a 90 kWh LFP battery, delivering a range of 324 miles (521 km). Positioned to compete with the Tesla Model Y, the Aion V will rely on competitive pricing to gain market share.
Thomas Schemera, COO of GAC’s European operations and a former executive at Hyundai’s N brand and BMW, stated that the company’s strategy is to build brand awareness before raising prices. Ongoing brand-building efforts are focused on Portugal, Poland, and Israel, with the UK as a key growth market.
GAC’s Entry Could Shift Market Dynamics
As GAC joins the European EV market, it enters a competitive landscape alongside Chinese brands like BYD and NIO. As many new brands emerge focusing on electrification, fierce competition is expected to produce compelling products. Hyundai’s absence in the compact EV segment means that if GAC secures this space first, it could pose a challenge for Hyundai.
Among its lineup, the Aion UT offers a larger body and more flexible configuration at a price point comparable to higher trims of the upcoming Renault 5. As Chinese EV brands ramp their expansion into Europe, GAC’s entry could bring new momentum to price and quality competition.
