Xpeng Begins European Manufacturing of G6 and G9 SUVs in Austria

Xpeng Motors' decision to start local production in Europe underscores its commitment to becoming a major player in the global electric vehicle (EV) market. The Graz plant, operated by Magna Steyr, is renowned for its flexible production capabilities, having previously assembled vehicles for illustrious brands like Mercedes-Benz, BMW, and Toyota. By leveraging Magna’s expertise in low- to medium-volume production, Xpeng is poised to efficiently scale its operations and meet the growing demand for EVs in Europe.

The choice of the G6 and G9 models for initial production is strategic, as the G6 has already proven to be a hit in the European market, accounting for 67% of Xpeng’s sales in the region. The introduction of these models is expected to bolster Xpeng’s market presence and cater to the European consumers' increasing appetite for sustainable and innovative vehicles. The company's future plans include expanding its production line to incorporate other models, such as the P7+ liftback, which is marketed as an 'AI car' due to its advanced technology features.

Xpeng’s expansion is not limited to manufacturing. The opening of its first European research and development center in Munich, Germany, signals the company’s intent to adapt and innovate its products for the local market. This facility is expected to play a crucial role in technical collaboration and product adaptation, ensuring that Xpeng’s vehicles meet the specific needs and preferences of European consumers. The Munich center, combined with the production capabilities at Graz, positions Xpeng to offer a diverse range of products, including sedans and high-performance EVs.

At the 2025 Munich Motor Show, Xpeng showcased its robust lineup, which included the new P7, updated versions of the G6 and G9, the X9 MPV, and the P7+. The company also unveiled futuristic concept technologies like humanoid robots and a flying car prototype. Chairman and CEO He Xiaopeng articulated a vision of an AI-driven ecosystem, encompassing smart EVs, robotics, and flying vehicles. This ambitious roadmap reflects Xpeng’s aspiration to become a global leader in AI-centric automotive manufacturing.

As Xpeng navigates the competitive landscape of electric vehicles, its strategic focus on innovation and market adaptation will be critical. The company’s European production and R&D initiatives are expected to not only enhance its product offerings but also accelerate its growth trajectory in the region. By establishing a local manufacturing presence, Xpeng is poised to improve its supply chain efficiencies and customer service, ultimately strengthening its position in the European EV market.