Xpeng Expands European Presence with Entry into Five New Markets

Reports on manufacturing, labor and earnings with clear, practical context. Drives a Tesla Model 3 RWD; family hauler is a Volvo XC60.
Chinese electric vehicle manufacturer Xpeng Motors has announced a significant expansion into Europe, marking its entry into Switzerland, Austria, Hungary, Slovenia, and Croatia. This move is part of Xpeng's broader strategy to accelerate its global presence and capitalize on the growing European market for electric vehicles.
Xpeng's expansion into these five countries is a strategic move to strengthen its foothold in the European market. The company has partnered with the European mobility service provider Hedin Group to launch its 2025 models, including the Xpeng G6 and G9, in Switzerland. The P7+ model is expected to follow in early 2026. This marks a significant step for Xpeng, which has been steadily expanding its global footprint since its initial foray into Norway in 2021. Now, with operations spanning over 46 countries, Xpeng is poised to become a major player in the European electric vehicle market.
In Austria, Xpeng plans to adopt the successful authorized dealer model it has implemented in Germany. Initial dealerships will be established in major cities such as Vienna, Salzburg, Graz, and Klagenfurt. The company aims to expand its presence to 10 locations by the end of 2025 and 20 by 2026. This strategy not only enhances Xpeng's visibility in the region but also provides a robust support network for its customers.
Xpeng's entry into Hungary, Slovenia, and Croatia will be managed by a joint venture between the AutoWallis Group and Salvador Caetano Group. This collaboration underscores the company's commitment to building a strong Southeastern European market presence. Xpeng's recent manufacturing partnership with Magna's factory in Graz, Austria, will further bolster its European operations by enabling local production. This move helps Xpeng avoid EU tariffs and strengthens its competitive edge in the market.
The manufacturing partnership with Magna is particularly significant as it marks the first time the factory will assemble complete vehicles for a Chinese automaker. Starting in the third quarter, the Graz facility will begin producing the G6 and G9 models, enabling Xpeng to better meet the demands of its European customers. This local production capability is expected to streamline operations and improve supply chain efficiency.
Xpeng's European expansion is also supported by its new R&D center in Munich, Germany, which focuses on developing additional models for the region. This initiative is part of Xpeng's broader plan to increase its sales and service network. In the first half of 2025 alone, Xpeng sold over 8,000 vehicles in Europe, indicating strong consumer interest and potential for growth.
With its ambitious expansion plans and strategic partnerships, Xpeng is well-positioned to make a significant impact in the European electric vehicle market. The company's focus on local production, strong dealer networks, and innovative R&D efforts will likely drive its success in these new markets. As Xpeng continues to grow its presence, it remains a company to watch in the global EV landscape.

About Priya Nair
Reports on manufacturing, labor and earnings with clear, practical context. Drives a Tesla Model 3 RWD; family hauler is a Volvo XC60.