XPENG Teams up With Magna for Local EV Production in Europe
2025-09-16 11:39
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Wedoany.com Report-Sept. 16, On September 15, XPENG announced plans to localize production in Europe through a strategic partnership with Magna’s plant in Graz, Austria. The collaboration will use Magna’s existing manufacturing lines to accelerate XPENG’s rollout of electric vehicles in the region.

The first localized project officially started in the third quarter of 2025, with the Magna Graz facility producing the XPENG G6 and G9 as initial models. Additional vehicles are expected to follow in subsequent phases.

XPENG entered the European market in 2021, beginning in Norway, and has since expanded to over 46 countries and regions worldwide. Between January and July 2025, the automaker sold 18,701 vehicles overseas, reflecting a 217% year-on-year increase. In Europe, registrations in the first half of 2025 exceeded 8,000 units, with the G6 accounting for roughly two-thirds of the total. The forthcoming P7+, promoted as the world’s first AI-powered vehicle, is expected to demonstrate the company’s latest smart mobility innovations to European consumers.

Local production of the G6 and G9 in the third quarter of 2025 is intended to strengthen XPENG’s competitiveness in Europe and establish a foundation for wider market penetration. The initiative is part of a broader strategy to build a complete value chain in Europe, from research and development to mass production.

XPENG recently inaugurated its first European R&D hub in Munich, operating under the motto “In Europe, With Europe.” The center is designed to capture local consumer preferences while advancing technology development and vehicle localization.

Looking ahead, XPENG plans to expand production at the Magna facility to include a broader range of models, encompassing sedans on dedicated EV platforms, mid-size and compact SUVs, and performance-oriented electric cars. Supported by the Munich R&D center, this strategy aims to diversify XPENG’s European portfolio and meet the growing variety of consumer demands in the region.

By combining local manufacturing with on-the-ground R&D, XPENG seeks to deliver smarter, more tailored EVs to European buyers while accelerating its globalization strategy. The collaboration with Magna, alongside ongoing market expansion and technology development, positions XPENG to strengthen its presence and competitiveness in Europe’s evolving electric vehicle market.

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