European automotive giant Magna begins assembly of Xpeng's electric sports utility vehicle in the continent
In a bold move, Chinese automaker Xpeng has established its presence in Europe, particularly in the competitive German market. The company, known for its innovative electric vehicles, has recently introduced the X9, a new electric SUV model, at the IAA 2025, a significant automotive show in Germany.
The X9, described as a 'spaceship for the road', and the G9 Long Range RWD have undergone test drives, showcasing their high performance and impressive speed. The G9, in particular, has been noted for its very fast speed during test drives.
Xpeng's European production strategy involves the use of the knocked-down method, a production technique commonly used by Asian automotive companies like Toyota, Suzuki, and Hyundai in countries such as India, Indonesia, and Thailand. This method helps to avoid high import tariffs by disassembling vehicles in the country of origin and reassembling them at more favorable conditions.
For the production of the X9 and G9 for the EU market, the electric SUVs will be assembled at Magna in Graz, Austria, using pre-assembled modules. This approach allows for medium production volumes and strengthens local manufacturing without significant investment.
The use of the knocked-down method is not limited to Asian companies; established automakers like Audi, Mercedes, and BMW also employ this strategy, particularly in Asian markets.
Xpeng's foray into the German market is not just a one-off event. The company is making a strategic move to challenge established automakers in the region, with the X9 and G9 likely to make a significant impact.
A photo gallery of Xpeng's showcase at IAA 2025 is available for those interested in a visual glimpse of the event. The future looks promising for Xpeng in Europe, particularly in the German market, as they continue to expand their presence and offer high-performance electric vehicles.
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