The Chinese brand has begun to make its cars in the continent

The Chinese brand of electric vehicles has launched Your first local production line In Europe, marking an important step in the industry, as it is placed as one of the first Chinese manufacturers to produce local vehicles in the continent. The company has chosen Magna’s facilities in Graz, Austria, to start the assembly of its most successful models in the European market.

A key movement. Xpeng’s decision of manufacture at the local level in Europe Respond directly to Tariffs imposed by the European Union to electric vehicles manufactured in China. The tariff tax can reach up to 35.3% for some manufacturers, a percentage that adds to the 10% base tariff. In the case of Xpeng, considered A “cooperating” entity In European research on subsidies, the additional rate is only 20.7%.

Xpeng G6. Image: Xpeng

The choice of the perfect partner. Magna Steyr It is not any manufacturer by contract. Its Graz facilities have produced vehicles for brands such as Mercedes-Benz, BMW, Jaguar Land Rover and Toyota. The plant specializes in flexible production of low volumes to media, and is recognized for its ability to assemble multiple complex models in shared lines. Currently, it is where the Mercedes-Benz class G. and the BMW Z4.

The numbers speak. Between January and July 2025, Xpeng registered sales abroad from 18,701 vehicleswhich represents an interannual increase of 217%. In Europe specifically, more than 8,000 units were recorded in the first half of the year. The G6 monopolizes 67% of the brand’s total sales in Europe, becoming the star model of the region.

More than a factory. Xpeng’s European strategy goes beyond production. The company has recently opened Your first center European research and development in Munich, Germany. This installation is designed to support technical collaboration and the adaptation of products to local markets. Although, like Explain The president and CEO he Xiaopeng, the center also focuses on conceptual prototypes through “an ecosystem driven by the focused on intelligent electric vehicles, humanoid robotics and flying vehicles.”

The time factor. Xpeng has advanced to his rival byd in the race for local European production. While serial production in Austria should be in full operation next month, ByD plans to start Your production in Hungary Towards the end of the year.

And now what. The company Plan Expand local production to other models in the future, including the new Xpeng P7+, described as its “car with AI”. The firm already has a presence in more than 46 countries and regions worldwide since its entry into Norway in 2021, being an example of the hunger that the Chinese automotive industry has by conquer other regionsnot only by export, but also through local manufacturing to grow the brand towards international markets.

Cover image | Xpeng

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