Xpeng Partners with Magna to Build Electric Vehicles in Austria

Chinese electric vehicle maker Xpeng (HK:9868) has announced a major partnership with global automotive supplier Magna International (NYSE:MGA) to expand its footprint in Europe. Under the agreement, Magna will manufacture two fully electric Xpeng models at its facility in Graz, Austria, with serial production expected to start in the third quarter of 2025.

This collaboration marks the first time a Chinese automaker has partnered with Magna for vehicle production in Europe. Known for its expertise in contract manufacturing, Magna has previously supported Chinese car brands with engineering and domestic assembly. However, this deal positions Xpeng as Magna’s first Chinese original equipment manufacturer (OEM) partner in Europe, highlighting the growing influence of Chinese EV makers in the global market.

Xpeng’s decision to localize production in Europe underscores its strategic push to compete with established electric vehicle leaders such as Tesla, Volkswagen, and BYD in the region. By leveraging Magna’s advanced manufacturing capabilities and established European base, Xpeng aims to strengthen its competitiveness in terms of quality, logistics, and regulatory compliance.

Magna emphasized that this partnership is designed as a long-term collaboration, aligning with Xpeng’s broader strategy to scale operations and meet rising demand for sustainable mobility across Europe. For Magna, the deal enhances its role as a leading contract manufacturer in the EV sector, building on its decades-long presence in Austria.

With European governments accelerating the shift toward clean transportation, Xpeng’s entry into localized production could give it a critical edge. The move not only reduces barriers for European customers but also signals growing confidence in Chinese EV technology on the international stage.