Austrian contract manufacturer Magna Steyr is to start production of the GAC Aion Y and Xpeng G6 in June.
The move comes as Chinese car makers seek to establish operations in Europe to circumvent increased EU import tariffs on EVs from China.
Magna Steyr's Graz facility, which has an annual production capacity of around 200,000, has to date built more than four million vehicles for a diverse variety of brands.
But with current contracts (including those from BMW and Toyota for the production of the Z4 and GR Supra) winding down, Magna has been seeking new clients to maintain operations following a round of retrenchments in 2024.