Xpeng Motors has officially launched its first European local production line at Magna’s manufacturing facility in Graz, Austria. The company confirmed on September 15 that production of the Xpeng G6 and G9 models has begun, marking a milestone in its European expansion strategy.
The Graz factory will initially produce the two SUV models, with plans to expand to additional Xpeng vehicles in the future. By leveraging Magna’s established production lines, Xpeng aims to accelerate the local manufacturing of electric cars in Europe.
Magna’s Graz facility is one of Europe’s best-known contract manufacturing plants. Operated by Magna Steyr, it has built vehicles for multiple global brands, including Mercedes-Benz, BMW, Jaguar Land Rover, and Toyota. The plant specialises in flexible, low- to medium-volume production and is recognised for handling complex multi-model assembly on shared lines, which allows automakers without their own factories in Europe to localise production.
Xpeng entered the European market in 2021, starting in Norway, and has since expanded to over 46 countries and regions worldwide. Between January and July 2025, the company reported overseas sales of 18,701 vehicles, representing a 217% year-on-year increase. In Europe alone, more than 8,000 vehicles were registered in the first half of the year. The G6 accounted for 67% of the brand’s European sales, making it the core model for the region.
The company also plans to introduce the Xpeng P7+ liftback, described as its “AI car,” to European customers in the near future.
In addition to manufacturing, Xpeng recently opened its first European research and development centre in Munich, Germany. This facility is intended to support technical collaboration and product adaptation for local markets. Together with Magna’s production capacity, Xpeng expects to develop a wider product lineup, including sedans, mid-size SUVs, compact SUVs, and high-performance EVs tailored for Europe.
Earlier this month, Xpeng showcased its lineup at the 2025 Munich Motor Show, featuring the new P7, updated G6 and G9, X9 MPV, and P7+. The display also featured concept technologies, including humanoid robots, a flying car prototype, and the SEPA platform.
Chairman and CEO He Xiaopeng stated that the company is building an AI-driven ecosystem centred on smart EVs, humanoid robotics, and flying vehicles, with the long-term goal of becoming a global AI-focused automaker.
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