China's GAC looks to add car production capacity in Europe

Guangzhou ‌Automobile Group aims ​to add production capacity in Europe to bolster its planned large-scale roll-out of cars in major markets like France, ‌GAC France's deputy chief executive, Cedric Lacour, said on Monday.

The Chinese auto maker's partner, Magna, currently produces the vehicles sold in Europe, where GAC has also expanded to Finland, ‌Greece, Poland, Portugal, Spain and the United Kingdom. "We are currently looking into production ‌capacity in Europe, both with Magna and with other investors," Lacour told Reuters on the sidelines of an event in Paris where GAC unveiled the compact EVs Aion UT and Aion V, its first ⁠two ​cars for the French ⁠market.

"We really want to establish a long-term presence here (in Europe), which automatically means we need production ⁠capacity," he said. GAC plans to have launched 12 electric and hybrid models in France by 2030, Lacour ​said during a presentation, adding the auto maker also plans to operate ⁠50 dealerships in France this year, rising to 200 by 2030.

"Our goal is to take a brand ⁠from ​launch to scaling up in just four years," he said. Asked if GAC, founded in 1997, was late and trailing some rivals in coming to Europe, Lacour ⁠said it was "entering the market at just the right time".

In July and August, EVs ⁠reached record shares ⁠of new car registrations of 35% and 38% in France, boosted by higher fuel prices linked to the Iran war.