BUSINESS

XPeng Partners With Magna to Build EVs in Europe

Published: Sep. 16, 2025 3:38 a.m. GMT+8

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XPeng announced Monday that production of its G6 and G9 sport-utility models began in the third quarter at Magna’s facility in Austria

Chinese electric-vehicle maker XPeng Motors has begun localized production in Europe through a partnership with automotive manufacturer Magna Steyr, a strategic pivot as Chinese carmakers navigate mounting trade barriers in the region.

XPeng announced Monday that production of its G6 and G9 sport-utility models began in the third quarter at Magna’s facility in Austria. The first batch of Europe-built XPeng vehicles has already rolled off the production line. The company said the plant will later add sedans and additional SUV models to its European portfolio.

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XPeng began localized production of G6 and G9 electric SUVs at Magna Steyr's Austrian facility in Q3 2024, with plans to add more models.
The move responds to the EU’s 2024 anti-subsidy tariffs of up to 35.3% on China-made EVs, and EU mandates to produce EVs locally.
Other Chinese automakers, including BYD and Leapmotor, are also establishing local European production amid growing demand for EVs.

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Who’s Who

XPeng Motors: XPeng Motors, a Chinese electric-vehicle maker, has started localized production in Europe through a partnership with Magna Steyr in Austria. Production of its G6 and G9 SUV models began in Q3, with the first Europe-built vehicles already produced. This move helps XPeng navigate trade barriers and secure its European foothold.

Magna Steyr: Magna Steyr is an automotive manufacturer and a subsidiary of the Canadian auto parts giant Magna International Inc. It has partnered with XPeng Motors for localized production in Europe. XPeng's G6 and G9 SUV models are being produced at Magna Steyr's facility in Austria, utilizing Magna's supply chain.

Magna International Inc.: Magna International Inc. (麦格纳国际) is a Canadian auto parts giant. Its subsidiary, Magna Steyr, has partnered with Chinese electric-vehicle maker XPeng Motors for localized production in Austria. This partnership allows XPeng to build its G6 and G9 SUV models, and potentially other models, at Magna's facility, using Magna's supply chain.

Haima Motor Corp.: Haima Motor Corp. is a company that partnered with XPeng for manufacturing. In 2017, XPeng initially collaborated with Haima Motor Corp. to build its first model in China, showcasing XPeng's experience with contract manufacturing before its European ventures.

BYD Co.: BYD accelerated its localization strategy in Europe by announcing plans in late 2023 to build a plant in Hungary with an annual capacity of 200,000 vehicles. The company is also constructing a factory in Turkey. This move enables BYD to navigate trade barriers and secure its presence in the European market.

Leapmotor: Leapmotor plans to initiate local production in Europe by 2026. This will be facilitated through plants owned by its European partner and shareholder, Stellantis, highlighting a trend among Chinese EV makers to move operations onshore due to increasing trade barriers.

Stellantis: Leapmotor plans to initiate local production in 2026. This will be done using facilities owned by其European partner and shareholder, Stellantis.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. (GAC Group) is a state-owned Chinese automotive manufacturer. They have shown interest in adopting a contract manufacturing model for their European production, potentially considering Magna's facility in Austria. This strategy aligns with other Chinese EV makers seeking local partnerships and production in Europe due to increasing trade barriers.

AI generated, for reference only