XPeng‘s founder and CEO He Xiaopeng announced on Monday that the Chinese automaker will produce a fourth vehicle at Magna Steyr’s facility in Graz, Austria — extending a partnership that began late last year.
“Glad to see our strong partnership with Magna continue to grow,” He wrote on X. “From the G6 and G9 to the recently rolled-off-line P7+, and soon our 4th model to be produced in Graz, we stay the course to localize production in Europe.”
The post came in response to a message published a few hours before by XPeng President Brian Gu, who revealed he had spoken at a Magna management conference in Austria.
“Reinforcing that local manufacturing is key to XPeng‘s commitment to Europe,” Gu wrote on the social media platform, adding that “with P7+ rolling off the production line in Graz and our collaboration expanding to a fourth vehicle, it’s exciting to keep this momentum going.”
According to Austrian newspaper Kleine Zeitung, Magna’s VP of Sales & Marketing Kurt Bachmaier said that assembly of XPeng‘s fourth model at the Canadian manufacturer’s European facilities would begin before the end of 2026.
The Graz facility currently assembles three models of the Guangzhou-based brand — the G6 and G9 SUVs and the P7+ sedan — from semi-knockdown kits (SKD) shipped from China.
The arrangement allows XPeng to avoid the European Commission’s additional duties on Chinese-built electric vehicles — which stood at 20.7% for the brand before the start of local assembly in September 2025.
European Lineup
XPeng has not disclosed which model will be the fourth to enter production in Graz.
The company is planning to bring several new models to Europe this year, including the X9 MPV and products from its lower-cost Mona series.
The X9 is one plausible candidate, as the seven-seat electric MPV entered the European market recently and is now available to order in Germany from €77,600.
Built on XPeng’s 800-volt SEPA 2.0 platform with up to 615 km of WLTP range, the model has already launched in the UK and other right-hand-drive markets.
Local assembly would reduce logistics costs and shorten delivery lead times at a time when European interest in the model is growing.
The Mona series may be an even likelier pick — and potentially the one with higher European demand.
Cheng confirmed at the FT summit that the Mona L03 compact SUV will debut in Europe at a brand event in Munich this July — with a second Mona model to follow later this year.
The Mona sub-brand has been a volume engine for XPeng in China.
The Mona M03 sedan delivered over 197,000 units in 2025, accounting for 46% of the company’s total sales.
The upcoming L03 — a compact coupe SUV sharing the M03’s design language — appeared in China’s MIIT filing catalog in April and is expected to launch domestically within 2026.
Adding a Mona model to the Graz line would give XPeng a locally assembled product at a significantly lower price point than the G6, G9, or P7+, broadening the brand’s addressable market in a region where affordable Chinese EVs from BYD, Geely, and others have gained traction.
XPeng first signaled the Mona series would come to Europe at the IAA Mobility show in Munich in September 2025, when He Xiaopeng told CNBC to expect “a variety of Mona products launched into the Chinese and European markets” in 2026.
Capacity Constraints
The fourth-model announcement comes just weeks after XPeng’s UK and Eastern Europe Managing Director Elvis Cheng acknowledged that the Graz plant’s capacity is no longer sufficient to meet growing European demand.
Speaking at the Financial Times Future of the Car summit in London in May, Cheng confirmed that the company is in early discussions with shareholder Volkswagen Group about potential European manufacturing arrangements to supplement Magna’s output.
VW holds a 4.95% stake in XPeng and has a broader technology-sharing partnership with the Guangzhou-based automaker.
Adding a fourth model to the existing Graz line would further intensify the capacity pressure Cheng flagged.
Delivery Figures
XPeng registered over 3,400 vehicles across European markets in April, with the majority assembled at the Graz facility.
The brand delivered 22,787 vehicles in Europe throughout 2025 — a 126% year-on-year increase — and is now present in 28 countries with 290 retail outlets.
Despite the strong European trajectory, XPeng’s global monthly deliveries have remained below year-ago levels as the company transitions between product cycles.
The automaker is targeting total global deliveries of between 550,000 and 600,000 vehicles in 2026.
By the end of May, the company had delivered 125,851 vehicles globally — still below the first four months of 2025 alone — representing between 21% and 23% of its full-year target.
As of Tuesday, most European markets had yet to report May delivery figures.
