BUSINESS

XPeng Plans Overseas Production Push as Tariffs Bite

Published: Apr. 28, 2026 12:44 a.m. GMT+8

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XPeng Inc.’s booth at the 2026 Beijing International Automotive Exhibition. Photo: VCG

Chinese electric-car maker XPeng Inc. plans to expand its overseas manufacturing footprint in 2026 by adding or increasing localized production capacity in key markets including Europe and Brazil.

Vice Chairman and Co-President Brian Gu outlined the strategy at the Beijing Auto Show, underscoring XPeng’s shift toward an asset-light contract-manufacturing model.

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XPeng plans 2026 overseas manufacturing expansion in Europe, Brazil via asset-light contract model amid tariffs.
2025 overseas deliveries: 45,000 vehicles (96% YoY rise), Europe >50%; partnerships: Magna (Europe Q3 2025), Handal (Indonesia), EPMB (Malaysia 2026).
Latin America entry: Mexico March 2026; Brazil (2.7M sales 2025, +2.1%) needs local R&D, production.

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Who’s Who

XPeng Inc.: XPeng Inc. plans 2026 overseas manufacturing expansion in Europe and Brazil via asset-light contract partnerships to counter tariffs. Already producing in Europe (Magna, Q3 2025), Indonesia (Handal, Mar 2025), and Malaysia (EPMB, mass prod 2026). 2025 overseas deliveries: 45,000 vehicles (+96% YoY), Europe >50%. Targeting Latin America post-Mexico entry (Mar 2026).

Magna International Inc.: Magna International Inc., a global auto-parts giant, partnered with XPeng to produce vehicles at its Austrian plant starting Q3 2025. The collaboration aids localization via Magna's mature supply chains in assembly and components, helping meet local-content requirements. XPeng views it as a starting point for European expansion.

Handal Indonesia Motor: Handal Indonesia Motor is a local assembler in Indonesia. XPeng partnered with it in March 2025 to produce G6 and X9 models. Its existing Chinese clients include Geely, BAIC, Chery, and the suspended Neta brand.

Geely: Handal Indonesia Motor, XPeng's Southeast Asia assembly partner, lists Geely as one of its existing Chinese clients.

BAIC: BAIC is listed among the existing Chinese clients of Handal Indonesia Motor, the Indonesian assembler XPeng partnered with in March 2025 to produce its G6 and X9 models in Southeast Asia.

Chery: Chery is an existing Chinese client of Handal Indonesia Motor, the local assembler XPeng partnered with in March 2025 to produce its G6 and X9 models in Southeast Asia.

Neta: Neta, a suspended Chinese EV brand, was previously a client of Handal Indonesia Motor, the Southeast Asian assembler now partnering with XPeng to produce G6 and X9 models.

EPMB Group: EPMB Group is a Malaysian auto-parts supplier. In December 2025, XPeng announced an agreement with EPMB to assemble its G6 and X9 models at EPMB's Malacca facility, with mass production expected to begin in 2026.

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