Chinese electric vehicle (EV) manufacturer Xpeng has commenced its first European production line in collaboration with Magna Steyr, an Austrian vehicle contract manufacturer and a subsidiary of Magna International.
The commencement of serial production for Xpeng’s smart EVs is slated for the third quarter of 2025, heralding the beginning of a long-term partnership between the two companies for future vehicle models.
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Xpeng plans to utilise Magna’s southern Austria plant to make its vehicles, with the initial G6 and G9 sport utility vehicles already coming off the production line, according to Bloomberg.
Xpeng’s decision to localise manufacturing in Europe is seen as a strategic move to circumvent the tariffs imposed on Chinese EVs by the European Union last year, the news agency added.
These tariffs include an additional charge of 20.7% on products from cooperating automakers, with some manufacturers facing tariffs as high as 35.3%.
Magna Complete Vehicles president Roland Prettner said: “We are thrilled to collaborate with Xpeng, marking a significant milestone as our first Chinese OEM partner here in Europe.
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By GlobalData“This partnership underscores our commitment to innovation and flexibility in meeting the evolving needs of the automotive industry. By leveraging our extensive experience and state-of-the-art facilities, we are well-positioned to support Xpeng’s ambitious goals for the European market.”
In July, Xpeng forayed into the Indonesian vehicle market by delivering the first locally assembled X9 flagship MPV to a local customer at the Gaikindo Indonesian International Auto Show in Jakarta.
Besides, Xpeng has initiated operations at its research and development (R&D) centre in Munich, Germany.
The R&D centre will play a crucial role in the development of new models, including electric sedans to be manufactured at the Magna factory, enhancing Xpeng’s product diversity for the European market, further reported Bloomberg.
Xpeng is said to have seen a substantial increase in sales, with 271,615 EVs delivered in the first eight months of this year, tripling the sales figures from the same period last year.
However, the firm had to recall the majority of its P7+ models due to a steering issue, prompting concerns over the quality and safety of its vehicles.
