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XPeng Outpaces Nio as Chinese EV Rivals Diverge in Europe

XPeng accelerates its European expansion with robust sales, localised production and dealership partnerships, while Nio’s market presence wanes despite a new sub-brand strategy.
This English translation is AI-generated and provided for reference only.

As fellow members of the “Wei-Xiao-Li” new wave of Chinese EV makers, XPeng Motors and NIO appear to be experiencing diverging trajectories in Europe.

XPeng Motors recently announced its first localized production project in Europe, which will officially launch in the third quarter of 2025 at the Magna plant in Graz, Austria, with the first batches of XPeng G6 and G9 vehicles rolling off the production line. Although XPeng's collaboration with Magna remains limited to vehicle assembly for now, the company is ramping up efforts to integrate into the European market. At the recent Munich Motor Show, XPeng announced the establishment of a new R&D center in Munich. As a rising star in AI-driven mobility, XPeng seemed to be very much in the spotlight at this year’s show. In addition to AI vehicles, XPeng also showcased a humanoid robot, flying cars, a land carrier concept, and its SEPA platform architecture.

XPeng’s technology has already won recognition from industry peers. In December 2023, Volkswagen Group acquired 4.99% of XPeng Motors' issued and outstanding share capital. In July last year, XPeng and Volkswagen signed a strategic cooperation and joint development agreement on electronic and electrical architecture technology. This August, the two parties announced an agreement to expand their cooperation in the same field.

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