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Xpeng Launches Europe Production to Bypass EU Tariffs
XPENG partners with Magna to assemble two electric vehicle models in Austria, starting Q3 2025, reflecting a growing trend of Chinese automakers localizing production in Europe.
- On September 15, 2025, Magna revealed that XPENG chose its facility in Graz, Austria, to manufacture a pair of all-electric vehicle models aimed at the European market.
- This collaboration follows Magna's nearly 20 years of supporting Chinese automakers and aligns with XPENG's strategy to strengthen its European presence and localize production to avoid EU import tariffs.
- Magna’s European facility in Graz will begin assembling XPENG’s G6 and G9 electric SUVs in Q3 2025, representing the first time the company is producing complete vehicles for a Chinese automaker locally, with further models planned as part of an ongoing partnership.
- Roland Prettner, President of Magna Complete Vehicles, expressed excitement about partnering with XPENG, emphasizing that this marks Magna’s inaugural collaboration with a Chinese OEM in the European market and showcases the company’s extensive experience and adaptability.
- Local European assembly is expected to reduce costs, shorten delivery times, and improve XPENG's competitiveness amid growing EV adoption driven by regulatory pressures and consumer incentives.
65 Articles
65 Articles
Production in the Alpine Republic: How the manufacturer Xpeng handles the EU's China tariffs with a clever move – and what that means for the car industry.
XPeng begins localized EV production in Europe with plans to expand
Six months after announcing plans to begin EV production in Europe with the help of contract manufacturer Magna Steyr, XPeng Motors has begun rolling two initial all-electric models off those assembly lines overseas. The Chinese automaker continues to deepen its presence in the EU to gain a larger market share. more…
Canadian manufacturer Magna International has signed a contract to assemble in Europe two models of electric vehicle for Chinese car manufacturer Xpeng.
Chinese electric car companies Guangzhou Automobile Group (GAC) and Xpeng have started production of vehicles at Magna Steyr's plant in Graz, Austria. The move allows them to avoid additional European Union tariffs on electric cars built in China. GAC will produce the Aion V SUV and the Aion UT hatchback, while Xpeng has rolled out its G6 and G9 SUVs. In addition, Xpeng has opened a research and development center in Munich to develop new models…
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