China's GAC to launch UK car sales with two Aion brand EVs

LONDON, July 16 (Reuters) - Jameel Motors has signed a deal to distribute Guangzhou Automobile Group's (GAC) vehicles in Britain, the two companies said on Wednesday, making GAC the fourth Chinese automaker to launch a new brand in Europe's second-largest car market this month.

GAC's UK sales will start with two Aion brand electric models - the Aion V SUV, and the Aion UT hatchback, with deliveries expected in the first quarter of 2026.

"GAC's entry into the UK marks a crucial step in its internationalization strategy," Wayne Wei, president of GAC International said in a statement.

When asked if GAC could bring its Trumpchi, Hycan or Hyptec brands to Britain as well as Jameel, owned by the Saudi Jameel family, it said it was focused on the Aion brand for now.

GAC has already announced plans to sell in Portugal and Poland and in May it launched in Brazil.

Britain is Europe's second-largest EV market after Germany. One in four cars sold in Britain in June was electric and unlike the European Union, Britain has not imposed tariffs on Chinese-made EVs.

Several Chinese automakers have already launched sales in Britain, including China's No. 1 seller BYD.

The British government this week said it would spend 650 million pounds ($871 million) on EV subsidies of up to 3,750 pounds for cars costing 37,000 pounds or less, which could attract more brands.

Earlier this month, Geely launched its Geely brand in Britain with its electric EX5 SUV.

Changan will soon launch its electric Deepal S07 SUV and Chery, which already sells Omoda and Jaecoo brand cars in Britain, has said its Chery brand cars will start selling in the coming weeks.

GAC's global sales fell 20% in 2024 to 2 million vehicles, driven largely by declines in China at its joint ventures with Honda and Toyota, while its sales outside China rose 67% to 127,000 vehicles.