Chinese electric-vehicle maker XPeng Motors has begun localized production in Europe through a partnership with automotive manufacturer Magna Steyr, a strategic pivot as Chinese carmakers navigate mounting trade barriers in the region, reports Caixin.
XPeng announced Monday that production of its G6 and G9 sport-utility models began in the third quarter at Magna’s facility in Austria. The first batch of Europe-built XPeng vehicles has already rolled off the production line. The company said the plant will later add sedans and additional SUV models to its European portfolio.
XPeng said it would initially use Magna’s supply chain to build vehicles in Austria and work closely with the contract manufacturer to gradually increase the level of localization. Magna Steyr is a subsidiary of Canadian auto part giant Magna International Inc.