Xpeng Begins EV Production in Europe
Xpeng, a prominent Chinese electric vehicle producer, has officially commenced the manufacturing of electric passenger cars within Europe. This significant development sees Xpeng collaborating with the esteemed Austrian contract manufacturer, Magna Steyr, known for assembling premium vehicles like the Mercedes-Benz G-Class. The initial models, the G6 and G9 electric crossovers, have already rolled off the production lines, marking a crucial step for Xpeng's European expansion. This strategy not only positions Xpeng ahead of competitors like BYD in establishing local production but also allows the company to navigate European import tariffs, which can be substantial for EVs manufactured outside the continent.
The decision by Xpeng to partner with Magna Steyr, a highly respected name in the automotive manufacturing sector, reflects a calculated approach to rapidly enter and scale operations in the European market. Magna Steyr's facility in Graz, Austria, boasts a rich history of assembling a diverse range of vehicles, including the BMW Z4 and previously the Jaguar I-Pace and Fisker Ocean electric vehicles. This collaboration provides Xpeng with immediate access to established manufacturing expertise and infrastructure, bypassing the lengthy and costly process of constructing a new factory. By localizing production within the European Union, Xpeng aims to mitigate the impact of import duties, which for \"cooperating\" entities like Xpeng in the EU's subsidy probe, stand at an additional 20.7% on top of the standard 10% duty.
Full-scale production is anticipated to be operational by the upcoming month, positioning Xpeng to gain a foothold before other Chinese manufacturers, such as BYD, initiate their European production efforts in Hungary later this year. While the G6 and G9 electric crossovers are currently Xpeng's top-selling models in Europe and are the first to be produced locally, the company has expressed intentions to broaden its localized manufacturing portfolio to include additional models in the future. Xpeng, established in 2014, has quickly risen as a formidable competitor to Tesla, known for its competitively priced and well-equipped vehicles. The company's ambitions extend beyond traditional EVs, encompassing electric aircraft, robotics, and advanced artificial intelligence technologies.
Since its entry into the Norwegian market in 2021, Xpeng has expanded its global footprint to over 46 countries and regions. The company reported a significant increase in exports, with 18,701 units shipped during the first seven months of the current year, representing a 217% year-over-year growth. In Europe, Xpeng recorded over 8,000 registrations in the first half of the year, indicating a growing momentum in its sales. A substantial portion of these European sales, approximately 67%, is attributed to the G6, a direct rival to the Tesla Model Y. The G6 stands out with its 800-volt battery system, enabling an impressive charging rate of up to 451 kilowatts, allowing for a 10% to 80% charge in a mere 10 minutes.
This strategic move into European production underscores Xpeng's commitment to becoming a significant player in the global electric vehicle market. By leveraging Magna Steyr's manufacturing prowess and strategically addressing tariff concerns, Xpeng is well-positioned to accelerate its growth and capture a larger share of the burgeoning European EV market. The expansion into local manufacturing is a crucial step in fulfilling Xpeng's broader vision of integrating advanced technology and innovative mobility solutions into the lives of consumers worldwide.