Chinese electric vehicle manufacturer starts production at Magna Steyr facility as part of strategy to reduce tariffs and establish local presence in key market.
XPeng has commenced manufacturing of its G6 and G9 electric SUVs at Magna Steyr’s facility in Graz, Austria, marking a significant milestone in the Chinese automaker’s European expansion strategy.
The production arrangement allows XPeng to avoid the European Union’s additional tariffs on Chinese-manufactured electric vehicles while establishing a manufacturing footprint in one of the world’s most competitive automotive markets.
Initial production focuses on the mid-size G6 SUV and larger G9 model, both of which have been adapted for European market requirements including local charging standards and regulatory compliance.
The Austrian manufacturing operation represents XPeng’s first overseas production facility and second overseas plant and demonstrates the company’s commitment to long-term success in European markets beyond simple vehicle exports.
The production arrangement utilises Magna Steyr’s established automotive manufacturing capabilities in Graz, where the Canadian supplier has operated for decades producing vehicles for various international brands.
XPeng has invested in tooling and equipment modifications to accommodate its electric vehicle platforms while leveraging Magna’s expertise in quality control and European manufacturing standards.
The facility will initially focus on complete vehicle assembly using components shipped from China, though XPeng has indicated plans to increase local sourcing over time.
Production volumes have not been disclosed, though industry sources suggest initial capacity could reach several thousand units annually as XPeng builds its European dealer network.
The Austrian facility joins XPeng’s existing manufacturing operations in China, where the company produces vehicles at facilities in Zhaoqing and Wuhan.
The European-manufactured G6 measures 4,753mm long, 1,920mm wide, and 1,650mm tall, and has a 2,890mm wheelbase, and features XPeng’s 800-volt architecture enabling rapid charging at European high-power charging stations, with the ability to charge from 10-80 percent in approximately 20 minutes under optimal conditions.
The larger G9 is also a five-seater but measures 4,891mm in length, targeting buyers seeking premium electric SUV capability and more space, and comes with a peak fast charging speed of 525kW and up to 585km of range on the WLTP cycle.
With prices for the G6 currently starting at around €47,600 in Germany and the G9 from €59,600, it remains to be seen if prices will drop by a meaningful amount as the removal of the tariffs, facilitated by the local production, improves XPeng’s profitability on the models.
The company has established sales operations in several European markets including Norway, Sweden, Denmark, and the Netherlands, with plans to expand across additional countries as production ramps up.
European deliveries of Austrian-manufactured vehicles are expected to commence in the fourth quarter, with XPeng targeting several thousand annual sales as it builds brand recognition and dealer networks across the continent.
