Production starts with G6 and G9
The initial phase of the collaboration will focus on assembling Xpeng’s electric SUVs, the G6 and G9. Magna Steyr — known for working with premium brands such as Mercedes, BMW, Jaguar Land Rover and Toyota — brings decades of contract-manufacturing expertise to the project. Xpeng and Magna plan to expand production in the future to include additional models.
Xpeng entered the European market in 2021, beginning in Norway, and has since expanded across the continent, including Italy. Between January and July 2025, the automaker reported 18,701 vehicles exported — a 217% year-on-year increase — with more than 8,000 registrations in Europe during the first half of the year. The G6 accounted for 67% of the brand’s European deliveries.
Alongside production, Xpeng recently opened its first European R&D center in Munich, Germany. Leveraging Magna’s manufacturing capacity, Xpeng aims to broaden its product range with models tailored to European tastes and needs.
Strategic and Economic Advantages
Producing cars within Europe helps Xpeng avoid EU tariffs that apply to electric vehicles manufactured in China — a key competitive advantage. The move reflects a wider trend among Chinese automakers accelerating investments in Europe to capture market share as domestic competition tightens.
