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Chinese carmaker GAC looks at making EVs in Europe as tariffs loom By Reuters

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Written by Gilles Guillaume

PARIS (Reuters) – Chinese state-owned carmaker GAC is exploring manufacturing electric cars in Europe to avoid EU tariffs, its general manager told Reuters on Sunday, joining a growing list of Chinese companies planning local production.

The company is among China’s largest automakers and targets sales of 500,000 overseas by 2030. It does not yet sell electric cars in Europe but will launch an electric SUV designed specifically for the European market at the Paris Motor Show, which starts on Monday.

Wei Hegang, speaking in Paris ahead of the show, said GAC still views Europe as an important market that is “relatively open” despite moves by the European Commission to impose tariffs on electric vehicles made in China.

“The tariff issue definitely has an impact on us. However, all of this can be overcome in the long run… I am confident that there will be a way to resolve all of this,” he said.

He added, “Local production will be one way to solve this problem.” “We are exploring this possibility very actively.”

The discussions were at a very early stage and the company was still considering whether to build a new factory or partner with – or take over – an existing factory, according to Wei.

The compact SUV on display in Paris, a 520-kilometre-range vehicle called the Aion V, is scheduled to be launched in some European markets in mid-2025, priced at less than 40,000 euros ($43,748), although the final price remains to be seen. Not yet determined. The government advisory committee said.

Following this launch, the next GAC vehicle scheduled to be sold in Europe will be a small electric hatchback, launching in late 2025.

($1 = 0.9143 euros)

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