GAC joins BYD in the Japanese market with Aion UT and V

China’s state-owned Guangzhou Automobile Group (GAC) will enter the Japanese electric vehicle (EV) market in the summer of 2026, according to Nikkei. The company plans to sell its Aion brand EVs through local dealerships, targeting 200 vehicle orders in 2026 and aiming to increase that to 2,000 units in 2027. The move follows earlier Japanese market entries by BYD and Geely, as Chinese EV makers seek to grow beyond the highly competitive domestic market.

Sales in Japan will be handled by M Mobility Japan, based in Tokyo’s Nakano district. GAC will initially launch two models: the compact Aion UT hactback and the Aion V SUV. The Aion UT will start at 3.3 million yen (approximately 14.98 million yuan or 14,980 USD), while the Aion V SUV will start at 5 million yen (approximately 22.70 million yuan or 22,700 USD). Both models will support Japan’s CHAdeMO fast-charging standard, and early sales will be limited to corporate clients requiring business-use vehicles.

GAC Group was established in 1997 and operates joint ventures with Toyota and Honda in China. The company launched the Aion EV brand in 2018, focusing exclusively on electric mobility. Including both EV and joint-venture models, GAC sold 2 million vehicles in 2024. Domestic sales growth has recently slowed amid intensified competition, with total sales from January to September 2025 down 11 per cent year-on-year to 1.18 million units, and Aion brand sales down 20 per cent to 180,000 units.

GAC has pursued overseas expansion since 2023, entering Southeast Asia with Thailand as its first market, announcing a UK market entry in 2025, and planning to enter Japan as its next target. The company considers the Japanese EV market overall underdeveloped but sees potential in business-use segments. Other Chinese automakers have also entered Japan, including Geely’s Zeekr brand, reflecting growing competition from China.

BYD has been present in Japan since 2023, with 3,508 vehicles sold from January to November 2025, a 64% year-on-year increase. BYD plans to launch the Racco, a light EV for overseas markets, in 2026, featuring design adaptations, including sliding doors popular in Japan. Current Japanese EV sales are low, with 55,380 units sold through November 2025, representing about 1.5 per cent of total new car sales, among the lowest shares in developed markets.

Japanese manufacturers are responding with updated EV offerings, including Toyota’s partially revised bZ4X, Nissan’s upcoming new Leaf, and Suzuki’s first EV, the e-Vitara. As both Chinese and Japanese companies expand their EV lineups, competition in the Japanese market is expected to intensify.

GAC’s 2026 Japanese entry will focus on the Aion UT and V models, initially targeting corporate clients, with broader expansion planned for 2027.