XPeng starts production at plant that builds Mercedes G-Class

XPeng has started production in Magna International's factory in Graz, Austria, home to the Mercedes G-Class, as the Chinese NEV carmaker accelerates its global expansion.

The company said its first European production program started in the third quarter of 2025, with the Magna plant rolling out XPeng G6 and G9 sport-utility vehicles. Additional models are slated to follow as XPeng expands its European lineup.

The move comes as XPeng's overseas momentum builds. Since entering Europe in 2021 through Norway, the Guangzhou, Guangdong province-based automaker has expanded to more than 46 markets worldwide.

Overseas deliveries reached 18,701 units in the first seven months of 2025, up 217 percent from a year earlier.

In Europe, XPeng became the top-selling Chinese brand in the mid-to-high-end pure-EV segment in the first half, registering more than 8,000 vehicles.

The G6 accounted for 67 percent of those sales. The company is also preparing to introduce the P7+, billed as the world's first AI-equipped car, to European buyers.

XPeng said its net promoter score in Europe stands at 81, surpassing several established luxury marques.

Local European production is expected to shorten delivery times, reduce costs and improve competitiveness in a market where regulatory pressure and consumer incentives are pushing EV adoption.

The Graz partnership is part of a broader European localization strategy. XPeng recently opened its first European R&D hub in Munich, Germany, under the banner "In Europe, With Europe" to tailor product design and technology for regional customers.

The facility will support development of a wider range of vehicles for the Magna plant, including sedans, mid-size and compact SUVs and high-performance EVs.