KATHMANDU: Chinese electric vehicle maker Xpeng has started local production in Europe to reduce the impact of high tariffs and strengthen its market share.
The company has launched its first European production line at the Magna plant in Graz, Austria. The first batch of Xpeng G6 and G9 SUVs has already rolled out. The facility will gradually add more Xpeng models in the coming years.
This is the company’s second overseas production facility. Earlier in July, Xpeng started production in Indonesia. The move comes after the European Commission decided in October 2024 to impose extra tariffs on Chinese EVs for five years, following an anti-subsidy investigation.
Magna, a Canadian automotive giant that runs the Graz plant, is among the world’s leading suppliers and contract manufacturers of vehicles.
Through its Magna Steyr division, the company builds vehicles for brands such as BMW, Mercedes-Benz, Jaguar and Toyota.
Magna runs over 110 factories in Europe and has experience producing models like the Mercedes-Benz G-Class, BMW Z4, Jaguar I-PACE and Toyota GR Supra.
