XPeng Inc. (NYSE:XPEV) has partnered with Magna International Inc. (NYSE:MGA) to assemble two electric vehicle models in Europe.
Production is slated to start in the third quarter of 2025. The agreement makes XPeng the first Chinese automaker to localize production at Magna’s facilities on the continent.
The EVs will be manufactured at Magna’s plant in Graz, Austria. The move highlights the growing importance of localized production as Chinese automakers expand in Europe.
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Roland Prettner, president of Magna Complete Vehicles, called the collaboration “a significant milestone” and said the company is ready to help XPeng achieve its growth plans in Europe. XPeng Vice Chairman and President Brian Gu described the partnership as the company’s “first step” toward a long-term commitment to the region.
Magna, with more than a century of manufacturing experience, has developed over 40 complete vehicles and derivatives and built more than 4 million cars worldwide.
Its extensive supplier network and contract manufacturing expertise make it a key partner for automakers expanding into Europe’s competitive EV market.
The deal underscores Europe’s growing role in the global EV race. Chinese automakers are stepping up their international strategies, while Magna strengthens its position as a contract manufacturer for companies seeking quick and flexible entry into new markets.
Price Action: XPEV shares are trading higher by 2.20% to $21.33 premarket at last check Monday.
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