XPeng officially launched in Mexico on Wednesday, debuting its G6 and G9 SUVs as the Guangzhou-based carmaker accelerates an overseas push aimed at offsetting slowing demand in China.
Founder and Chief Executive Officer He Xiaopeng announced the launch on X, calling it a three-year commitment to establish AI mobility leadership in Latin America by 2028.
“We are here for the long run, to build a sustainable smart mobility future together,” He Xiaopeng wrote.
The Mexico entry had been confirmed during XPeng‘s post-earnings call last week, when He told analysts the brand would officially launch at the end of March.
“The brand will officially launch in Mexico at the end of March, introducing the G6 and G9 to deepen its presence in Latin America,” he said at the time.
XPeng did not disclose Mexican pricing for either model.
Overseas Growth as a Strategic Imperative
The brand has increasingly framed international markets as its primary growth driver.
The company sold approximately 45,000 vehicles outside China in 2025 and has set a target of doubling that figure this year, with management aiming to raise overseas revenue to 20% of the total from the current 15%.
The longer-term goal is more ambitious.
XPeng has said it wants overseas sales to contribute 70% of total profit by 2030 and is targeting one million cumulative overseas deliveries by the same year.
Its global sales and service network now spans more than 1,000 locations across 60 countries.
The push abroad comes as domestic momentum fades. In the first two months of 2026, XPeng delivered 35,267 vehicles globally, with February figures depressed by a longer Chinese New Year holiday that disrupted production for roughly half the month.
The company guided for first-quarter deliveries of 61,000 to 66,000 units, implying a year-over-year decline of approximately 30% to 35% from the 94,008 vehicles sold in the first quarter of 2025.
First Quarterly Profit
The Mexico launch follows a milestone quarter for XPeng. The company posted its first-ever quarterly net profit in the final three months of 2025, reporting net income of 380 million yuan ($55.1 million).
XPeng also announced during the earnings call that it plans to increase R&D spending on physical AI to 7 billion yuan in 2026 and will launch four new models within the year.
Cumulative shipments of the company’s in-house Turing AI chip have exceeded 200,000 units, with a target of nearly one million by year-end.
VLA 2.0 and Volkswagen
XPeng‘s Mexico presentation featured its second-generation Vision-Language-Action (VLA 2.0) autonomous driving system, which the company describes as turning “cars into super agents.”
The system, launched earlier this month, uses large-scale end-to-end AI to deliver what XPeng calls Level 4 autonomous driving capability with quicker reactions and more human-like behaviour in complex scenarios.
Volkswagen became the first commercial customer for VLA 2.0 in February, marking the first time a major Western automaker adopted Chinese-developed autonomous driving software.
VW had previously invested $700 million in XPeng in 2023 for a 4.99% stake and the two companies are jointly developing electric vehicles for the Chinese market.
China — in Mexico
XPeng enters a Mexican market already populated by more than two dozens Chinese automotive brands.
Around 306,000 Chinese-made vehicles were sold in Mexico in 2025, representing roughly one in five cars sold in the country.
BYD leads with approximately 85,000 units, followed by MG, Chery (sold as Chirey), Changan, Great Wall Motor, JAC, Jetour, and others.
Geely‘s premium carmaker Zeekr, which launched in Mexico in July 2024 with its 001 and X models before adding the 7X SUV last year, is the closest competitor to XPeng in the premium electric segment.
Overseas Production
Beyond Mexico, XPeng is building manufacturing capacity outside China.
The company signed a deal with Malaysian manufacturer EPMB to assemble vehicles at a plant in Malacca, with production of the X9 minivan scheduled to begin by May.
In Europe, XPeng is currently assembling three models at the Graz plant of its manufacturing partner Magna Steyr.
