The wave of Chinese electric cars is reaching Japan’s shores, and another major player is about to jump in. Guangzhou Automobile Group (GAC), a state-owned giant, is set to introduce its Aion electric vehicle (EV) brand to Japan in the summer of 2026. This isn’t a tentative toe-dip, it’s a calculated entry into a market that’s been slow to embrace EVs, but is now becoming a new battleground for global automakers.
GAC is following in the tracks of other Chinese competitors like BYD and Geely, signaling a broader strategy to expand beyond China’s fiercely competitive home turf. The intense domestic price wars and innovation cycles are forging companies that are ready to compete anywhere, and Japan is next on the list.
The Game Plan: Aion’s Cautious First Step
GAC isn’t coming in with guns blazing. It’s starting smart. The rollout will be handled by M Mobility Japan and will begin with two models, the Aion UT compact hatchback and the Aion V SUV. The pricing is aggressive, with the UT starting at 3.3 million yen (around $22,500 USD) and the V at 5 million yen (around $33,700 USD).
Crucially, both models will support Japan’s local CHAdeMO fast-charging standard. This is a key technical detail that shows GAC has done its homework. Not supporting the local charging infrastructure would be a huge misstep, so it’s a problem they’ve wisely avoided. The initial sales push will target corporate clients for business fleets, a segment GAC identifies as a key opportunity. They are projecting a modest 200 orders in 2026, but the goal is to ramp up quickly to 2,000 vehicles in 2027.
Who Is GAC Aion?
For those unfamiliar, GAC is a legacy automaker in China, established in 1997. The company has deep ties with Japanese industry, running successful joint ventures with both Toyota and Honda. There’s a certain irony in GAC now preparing to compete with its long-time partners on their home soil.
Recognizing the shift to electric, GAC launched its dedicated EV brand, Aion, in 2018. While the parent company sold a massive 2 million vehicles in 2024, its growth has recently hit a snag. Facing relentless competition at home, sales have dipped, pushing GAC to look outward. After entering Southeast Asia and announcing plans for the UK in 2025, Japan became the next logical target.
A Growing Chinese Presence
GAC is not alone. Geely‘s premium Zeekr brand is also in Japan, and BYD has been there since 2023. BYD’s efforts are already paying off, with a 64% year-on-year sales increase. Japan’s EV market is still small, making up just 1.5% of new car sales, which is one of the lowest rates among developed countries. Chinese automakers see this not as a weakness, but as an untapped market with room for explosive growth, especially as offerings like plug-in hybrid vehicles become more popular.
The local giants are finally waking up. Toyota has revised its bZ4X, Nissan is preparing a new Leaf, and Suzuki is launching its first EV. The fight for Japan’s electric future is about to get a lot more interesting. GAC’s entry with the Aion UT and V is another clear signal that the pressure is on, and customers can expect more choices and better cars as a result.
