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China's Xpeng launches EV production in Europe with Austria's Magna Steyr
Yahoo Finance· 2025-09-15 09:30
Core Viewpoint - Xpeng has commenced production in Europe through a partnership with Magna Steyr in Austria, marking a significant step in its global expansion strategy and allowing it to avoid tariffs on Chinese-made electric vehicles [1][2][3]. Group 1: Production and Strategy - Xpeng has started assembling the G6 and G9 SUVs at Magna Steyr's plant in Graz, with plans to deepen cooperation over time [1][5]. - The company aims to enhance its competitiveness in the European market by manufacturing locally, which exempts it from a 30.7% duty on imports of Chinese-made EVs [3][4]. Group 2: Industry Trends - Other Chinese automakers are expected to establish production facilities in Europe to leverage their EV technologies and increase market share, as highlighted by industry experts [6]. - BYD and Chery are currently the only Chinese carmakers with established plants in Europe, with BYD operating factories in Turkey and Hungary, and Chery in Spain [6]. - Contemporary Amperex Technology plans to begin operations at its €7.3 billion factory in Hungary, which will have a production capacity of 100 gigawatt-hours, sufficient for 2 million EVs [8].