Xpeng Begins SUV Production At Magna Plant As Chinese EV Maker Localizes Production In Europe

Xpeng has begun local manufacturing in Europe, marking a key step in its overseas expansion as the Chinese EV maker ramps up competition in the region. 

The company said its first European localized production project has started at Magna Steyr’s plant in Graz, Austria, with the first G6 and G9 SUVs rolling off the line. More models will follow, making the Austrian facility Xpeng’s second overseas manufacturing site after Indonesia, CnEVPost reported.

Instead of building a new factory, Xpeng is using Magna Steyr’s existing production lines. The Canadian auto supplier operates more than 110 plants across Europe, with Graz as its largest. 

Magna Steyr president Roland Prettner said the site helps Chinese automakers fully comply with EU emissions rules, underscoring its role in supporting OEM clients like Xpeng. The company described the project as part of its strategy to accelerate global growth through “Chinese smart manufacturing.”

Xpeng is also broadening its presence in Europe beyond manufacturing. At the IAA Mobility show earlier this year, the company said it would open its first European research and development center in Munich, its ninth worldwide, a move that follows Tesla’s own plan to establish a new R&D hub in Berlin by 2026.

The hub will work with existing sites in Silicon Valley, San Diego and several Chinese cities to adapt products for European buyers. The Munich center enables us to directly listen to European users and translate their needs into innovations, Vice Chairman and Co-President Brian Gu said, noting the expansion reflects the company’s principle of “In Europe, With Europe.”

The moves come as Xpeng delivered a record 37,709 vehicles in August, up 169% from a year earlier, bringing cumulative deliveries to 861,994. The company entered Europe in 2021 through Norway and now operates in 46 countries and regions.

On Stocktwits, retail sentiment for Xpeng was ‘bearish’ amid ‘extremely low’ message volume.

Xpeng’s U.S.-listed stock has risen 76.7% so far in 2025.

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