Price drop expected for Xpeng made in Europe!
This page is translated from the original post "Baisse de prix en vue pour les Xpeng fabriquées en Europe !" in French.
- 15/09/2025 17:12
Xpeng accelerates its expansion in Europe by entrusting the production of its models to a leading subcontractor.
The Chinese electric vehicle manufacturer Xpeng has launched the production of its G6 and G9 SUVs at the Magna Steyr plant in Graz, Austria. This step marks a strategic advancement and could directly benefit consumers. The vehicles will likely be better tailored to local expectations, and they should particularly be offered at much more attractive prices thanks to savings made on taxes and import duties.
To produce its SUVs, Xpeng relies on Magna, a historical player in the automotive industry. The Canadian group has over a century of experience and has assembled models for Mercedes-Benz, BMW, Jaguar Land Rover, Toyota, and Fisker, among others. The Graz facility is renowned for its flexibility and capability to manage multiple models on the same line. Thanks to this expertise, Xpeng can quickly launch its vehicles in Europe without building its own factory. However, it’s only assembly and not full production, as the parts will still come from China. But it’s better than nothing while waiting… for something better!
Xpeng beats BYD and trails Tesla
Initially, only the G6 and G9 SUVs will be assembled in Graz. But the brand plans to expand its range in the coming years. Local production indeed presents a strategic advantage. It reduces dependence on imports from China with the possibility of storing parts, and allows avoiding some customs duties. It also paves the way for certain support measures for local production and electric mobility implemented by the European Union and its member states.
For consumers, the benefits are tangible. The SUVs will be available more quickly, better suited to local markets, and potentially more affordable. This establishment also strengthens Xpeng’s credibility, showcasing a sustainable and serious commitment in Europe.
In parallel, Xpeng is developing its engineering capabilities on the continent. The brand has opened a research and development center in Munich, dedicated to adapting models for local markets and developing new technologies.
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With this partnership, Xpeng outpaces its main Chinese competitors, with BYD leading the pack. However, there is still some way to go to reach Tesla, which has a unique and exceptional complete production facility in Berlin.
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