XPeng Plans Local Production in Europe and Brazil by 2026

During the Beijing Auto Show, Gu Hongdi, Vice Chairman and Co-President of XPeng Motors, stated that the company plans to further advance its global expansion in 2026, with a key focus on local manufacturing. XPeng has already launched localized production in Indonesia, Austria, and Malaysia, all utilizing a light-asset contract manufacturing model. This strategy aims to enhance the company’s competitiveness and influence in global markets. As a relatively late entrant among China’s new-energy vehicle startups, XPeng previously adopted a more conservative stance toward overseas production capacity but is now deploying or expanding local manufacturing capabilities in key markets such as Europe and Brazil to better meet regional demand. Meanwhile, another EV startup, Leapmotor, is also pursuing a light-asset approach by partnering with Stellantis to assemble vehicles using the latter’s production lines in Malaysia, Spain, and Brazil, accelerating its own global footprint.