Xpeng executive says EV maker will expand European production ahead of local content rules
XPEV•Xpeng plans to expand European production to meet upcoming EU local-content rules, with a decision on a new production line expected within months. The company expects to grow by high double digits in Europe.
1. Plans for more production
Xpeng vice president Yeqing Zheng said the company plans to expand European production ahead of new EU rules mandating minimum local content in electric cars. The company currently has Magna producing vehicles for it under contract at a factory in Austria, but Zheng said its volume is not sufficient for Xpeng’s needs.
2. New line under consideration
Xpeng is considering partnering with a local manufacturer to build a new plant or operate an existing one. The line would focus on mid-level vehicles, have a lower cost base than the Austrian factory and start production by the time the EU rules take effect. Zheng said a decision is expected within months. Xpeng is also building a local supply chain and sees finding a battery supplier able to meet its charging needs and energy-density requirements as challenging.
