Xpeng Kicks Off European EV Production With Magna Steyr Partnership

Xpeng Beats BYD To Local EV Production

Chinese EV maker Xpeng has officially begun producing passenger cars in Europe, becoming the first Chinese automaker to achieve this milestone. Partnering with Austrian contract manufacturer Magna Steyr, the company has already rolled out its G6 and G9 crossovers, beating rival BYD to the punch as it prepares to start production in Hungary later this year.

Magna Partnership and Tariff Advantage

Instead of investing billions in its own factory, Xpeng chose a faster and safer route by working with Magna Steyr, whose Graz facility is known for building the Mercedes-Benz G-Class, BMW Z4, and past EVs like the Jaguar I-Pace. This partnership not only ensures production quality but also helps Xpeng avoid costly EU import tariffs. Chinese-built EVs face a 10% duty plus extra tariffs—ranging up to 35.3% for some automakers—while Xpeng itself would face a 20.7% surcharge. Local assembly removes this burden, making its cars far more competitive in Europe.

Scaling Up And Expanding Ambitions

Series production is expected to ramp up by next month, with Magna focusing first on the G6 and G9, Xpeng’s top-selling European models. More models are likely to follow, signaling a long-term commitment to the European market. Founded in 2014, Xpeng may be young, but it has sold nearly 200,000 vehicles worldwide in 2023 and continues to expand aggressively. Beyond EVs, its ambitions stretch into electric aircraft, robotics, and AI, positioning it as more than just a carmaker.

European Growth and the G6 Breakout

Since entering Europe in 2021 through Norway, Xpeng has expanded to more than 46 countries and regions. In the first seven months of 2025, it exported 18,701 vehicles—a 217% year-over-year increase—with over 8,000 registrations in Europe alone. The majority of sales come from the G6 crossover, which accounts for 67% of deliveries.

The G6 has proven especially appealing as a Tesla Model Y rival, offering an 800-volt battery system, ultra-fast charging up to 451 kW, and the ability to recharge from 10% to 80% in just 10 minutes. Combined with competitive pricing, these specs make the G6 one of the most practical EVs available for European buyers.

Looking Ahead

By leveraging Magna’s expertise and avoiding tariffs, Xpeng has positioned itself as a serious European contender. Its strategy blends affordability, advanced technology, and local production, giving it a clear edge as the continent becomes a key battleground in the global EV race.

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