XPeng signed an agreement on Tuesday with the world’s largest supplier of automotive safety systems, Autoliv, covering vehicle safety technology, supply chain coordination, and international expansion.
The Swedish-based company designs and manufactures airbags, seatbelts, steering wheels, and safety electronics for automakers including Toyota, Volkswagen, Ford Motor Company, Mercedes-Benz, BMW, and Volvo Cars.
Both companies will cooperate across five broad areas: technology development, digitalization, supply chain coordination, sustainability, and global expansion.
No financial terms were disclosed.
The Stockholm-listed supplier reported $10.8 billion in revenue in 2025, employs roughly 64,000 people across 25 countries, and operates 13 technical centers worldwide.
Technology and Safety
On the technology side, Autoliv will work with XPeng engineers earlier in the vehicle design process on next-generation safety systems.
Areas of focus include new airbag configurations, smarter seatbelt technology, occupant monitoring, and crash sensing — with a particular emphasis on safety solutions designed for autonomous and semi-autonomous vehicles.
The shift toward higher levels of autonomy creates new engineering challenges. Passengers in future self-driving vehicles may recline seats, face different directions, or sit in unconventional positions, rendering traditional restraint systems less effective.
Autoliv has positioned itself at the center of this emerging design challenge across its partnerships with Chinese automakers.
Digitalization is another pillar of the agreement.
Modern safety systems increasingly rely on software as much as hardware, and the collaboration is expected to cover areas such as crash simulation, AI-assisted product development, and software integration between Autoliv’s safety components and XPeng‘s vehicle computers.
The new agreement builds on an existing relationship between the two companies.
Two years ago, Autoliv signed a strategic cooperation agreement with XPeng AEROHT, the automaker’s flying-car subsidiary, to develop safety solutions for electric vertical takeoff and landing vehicles.
Autoliv’s China Strategy
XPeng is far from the only Chinese automaker Autoliv has courted.
The safety supplier has systematically deepened relationships with several of China’s leading auto companies over the past four years, positioning itself to ride the wave of Chinese OEM expansion both domestically and abroad.
Autoliv China served 42 Chinese OEM brands as of mid-2025 and estimated its market share with Chinese automakers would rise from roughly 23% in 2023–2024 to approximately 30% by 2026, according to an August 2025 investor presentation.
The push reflects a structural shift in China’s automotive market.
Chinese-branded automakers grew their share of domestic light vehicle production from 38% in 2019 to an estimated 62% in 2025, according to S&P Global data cited in the same presentation — steadily displacing European, American, Japanese, and Korean competitors.
Geely represented the largest share of Autoliv’s Chinese OEM revenue in 2024 at 28%, followed by Great Wall Motor at 21%, Chery at 12%, BYD at 11%, Li Auto at 8%, and Nio at 6%.
XPeng, with its flying car business alone, accounted for 3%.
Geely
Autoliv’s first major Chinese strategic cooperation came in October 2022 with Geely Auto, covering 16 technology areas including safety for highly autonomous driving, intelligent steering wheels, 360-degree occupant protection systems, and sustainable interior materials.
Geely and Autoliv had worked together since 2002.
During the first phase, Autoliv and Geely developed airbag and occupant protection systems for zero-gravity seats — addressing a critical industry blind spot for fully reclined seating positions.
Two months ago, the two launched a second phase of the partnership alongside a joint innovation lab with China Automotive Engineering Research Institute in Ningbo.
Nio and GWM
Autoliv and Nio signed a strategic framework agreement in May 2023 focused on next-generation EV safety.
Areas of collaboration included roof-mounted headliner airbags using environmentally friendly inflators, airbag concepts providing protection for passengers in different seating positions, and biology-based sustainable materials for airbag cushions and seatbelt webbing.
Great Wall Motor followed in September 2023, building on a supplier relationship that began in 2003 when Autoliv started providing seatbelts for Haval SUVs.
On Monday, Autoliv and GWM expanded the partnership with a Global Strategic Cooperation Framework Agreement, covering global business growth, supply chain collaboration, localized operations, integrated safety systems, and sustainable growth.
Similar to XPeng, the move aims to support GWM‘s international expansion.
Overseas Push
The global expansion component may prove the most consequential element of the deal.
XPeng expanded from 30 to 60 markets during 2025 and has continued adding countries in 2026, entering Mexico in March and Romania in April.
Entering new regions requires meeting local safety regulations that vary significantly between Europe, Southeast Asia, Latin America, and — eventually — North America.
All three XPeng models tested by Euro NCAP — the 2023 P7 sedan, the 2023 G9 SUV, and the 2024 G6 SUV — received the maximum 5-star safety rating.
For vulnerable road user protection, the P7 and G6 each scored 81%, while the G9 scored slightly lower at 78%.
Europe is the core of the automaker’s overseas strategy — the company now operates in 28 European countries with 290 retail outlets and assembles the G6, G9, and P7+ at Magna Steyr’s plant in Graz, Austria.
The company established dedicated supply chain teams in Europe and Southeast Asia earlier this year and is in early discussions with shareholder Volkswagen Group about additional European manufacturing capacity beyond Graz.
A fourth model will enter European assembly before year-end, CEO He Xiaopeng confirmed in June.
Founder and CEO He Xiaopeng expects half of XPeng‘s sales to come from global markets within the next decade.
