Chinese electric car manufacturer Xpeng has launched its first local production operation in Europe. The company announced the start of mass production of the G6 and G9 SUV models at its Magna plant in Graz, Austria, on September 15th. This step is considered a critical milestone in Xpeng’s strategy to strengthen its presence in the European market.

Xpeng launches European operations

The Graz plant, operated by Magna Steyr, is a contract manufacturer for global automakers such as Mercedes-Benz, BMW, Jaguar Land Rover, and Toyota, and is known for its flexibility in multi-model assembly.

Through this strategic partnership, Xpeng plans to offer a broader product range in Europe. Initially, the plant will produce the G6 and G9 models, but production of other Xpeng models is planned to begin in the future.

Xpeng’s entry into the European market began in Norway in 2021. The company’s international sales increased by 217 percent year-on-year between January and July 2025, reaching 18,701 units. More than 8,000 of these sales occurred in Europe alone, with the G6 model accounting for 67 percent of these sales. The company also plans to introduce the AI-focused P7+ liftback model in Europe soon.

Xpeng made another significant investment in Europe with the opening of its first R&D center in Munich, Germany. This center conducts technical development and product adaptations tailored to the needs of the European market.

This R&D strength, combined with Magna’s production capacity, allows the company to offer products in various segments, including sedans, mid-size SUVs, compact SUVs, and high-performance electric vehicles.