Chinese automaker XPeng has officially launched European production of its G6 and G9 electric SUVs at Magna Steyr’s facility in Graz, Austria. This marks the company’s first overseas manufacturing base in Europe and a key milestone in its global expansion strategy. The move allows XPeng to sidestep EU tariffs on Chinese-made EVs while boosting competitiveness in Europe’s premium SUV market.
Manufacturing Partnership With Magna Steyr
The production deal leverages Magna Steyr’s decades of expertise in automotive manufacturing. The Graz facility has previously built vehicles for global brands, giving XPeng instant access to established European quality standards.
XPeng has invested in tooling and equipment to adapt Magna’s lines for its EV platforms. Initial assembly will use components shipped from China, but the company plans to expand local sourcing as operations scale. While production volumes remain undisclosed, industry estimates suggest several thousand units annually, supporting XPeng’s rollout in key European markets.
Models in Production: G6 and G9
XPeng G6
- Dimensions: 4,753mm (L) × 1,920mm (W) × 1,650mm (H), 2,890mm wheelbase
- Platform: 800-volt architecture enabling ultra-fast charging
- Charging: 10–80% in about 20 minutes
- Positioning: Mid-size premium EV SUV priced from €47,600 in Germany
XPeng G9
- Dimensions: 4,891mm length, larger than the G6
- Charging Speed: Up to 525kW peak fast charging
- Range: Up to 585km (WLTP)
- Positioning: Premium large SUV starting from €59,600
Both models have been adapted for European standards, including charging infrastructure compatibility and regulatory compliance.
Market Strategy and Pricing Impact
By assembling vehicles in Austria, XPeng reduces exposure to EU tariffs, potentially improving profitability and enabling more competitive pricing. While immediate price cuts have not been confirmed, local production creates room for future adjustments.
XPeng currently sells in Norway, Sweden, Denmark, and the Netherlands, with expansion plans across more European markets. Deliveries of Austrian-built vehicles are expected to begin in the fourth quarter of 2025.
Significance for XPeng’s Global Expansion
The XPeng European production milestone underscores the brand’s ambition to become a serious global EV competitor. Establishing a European footprint not only boosts trust among buyers but also positions XPeng directly against premium EV makers like Tesla, BMW, and Mercedes.
The Graz facility complements XPeng’s domestic plants in Zhaoqing and Wuhan, signaling the company’s intent to diversify production and scale internationally.
