Magna has revealed that the XPENG electric vehicle and technology brand chose its facility in Graz, Austria, to manufacture a pair of all-electric vehicle models (the G6 and G9) aimed at the European market.

This collaboration follows Magna’s nearly 20 years of supporting Chinese automakers and aligns with XPENG’s strategy to strengthen its European presence and localize production to avoid EU import tariffs.

Magna’s European facility in Graz will begin assembling XPENG’s G6 and G9 electric SUVs in Q3 2025, representing the first time the company is producing complete vehicles for a Chinese automaker locally, with further models planned as part of an ongoing partnership.

Roland Prettner, President of Magna Complete Vehicles, expressed excitement about partnering with XPENG, emphasising that this marks Magna’s inaugural collaboration with a Chinese OEM in the European market and showcases the company’s extensive experience and adaptability.

Local European assembly is expected to reduce costs, shorten delivery times, and improve XPENG’s competitiveness amid growing EV adoption driven by regulatory pressures and consumer incentives.

XPENG is currently subject to a 30.7 per cent duty in the European Union on its Chinese-made cars exported to the bloc.

The Guangzhou-based electric carmaker (part owned by Volkswagen Group) said on Monday that it had started assembling the G6 and G9 SUVs at Magna Steyr’s plant in Graz. XPENG did not elaborate on its planned output, but added that cooperation with its partner would deepen over time.

“The roll-out marked a milestone in XPENG’s globalisation strategy,” the company said. “More XPENG models will be assembled in the factory.”

Manufacturing locally will exempt XPENG from tariffs imposed on imports of Chinese-made pure EVs in Europe, while simultaneously enhancing its competitiveness in one of the world’s major automotive markets.

Meanwhile in February last year, XPENG signed a deal with Volkswagen to jointly develop two mid-sized battery-powered vehicles for the highly competitive Chinese market in 2026.

The EVs, bearing the VW badge, will be designed and built based on “joint purchasing activities” and sharing of technologies. Did you know that the VW Group owns 5 percent of XPENG following a USD700 million investment in 2023.