Assembles Chinese electric cars manufactured by Magna Steyr in Graz, Austria
Xpeng Motors to Begin Series Production of Two New Electric Vehicle Models in Austria
Chinese electric vehicle manufacturer Xpeng Motors has secured a contract for assembling two new electric vehicles in Europe, with production set to begin later this quarter in the Austrian city of Graz.
The two new models, the Xpeng P7+ and the Xpeng X9, were unveiled at the IAA Mobility 2025 trade show. The Xpeng P7+ is a spacious five-seater with a coupe design, while the Xpeng X9 is a luxurious seven-seater.
The assembly of these vehicles will take place at Magna Steyr's factory in Graz, following a partnership announced in mid-September 2025. This partnership came about due to a halt in Fisker production, which led to the layoff of 500 Graz employees in April 2024.
Magna Steyr has capacity available for the assembly of Xpeng's electric vehicles, having suffered a setback with the failed Fisker project, which cost the company 294 million euros.
Xpeng Motors, officially known as Guangzhou Xiaopeng Motors Technology Company Limited, was founded in 2014 and has offices in Guangzhou, the Silicon Valley, and Munich. The company's first serial production model, the Xpeng G3, began production in November 2018.
Since 2023, Volkswagen has held a stake of just under five percent in Xpeng. The connection between Magna International and Xpeng Motors was established with the announcement of their partnership.
Graz, the capital of the federal state of Styria and the second-largest city in Austria, is an ideal location for the assembly of Xpeng's electric vehicles. The city is home to Magna Steyr's factory, and its strategic position in Europe makes it a hub for the automotive industry.
Frank Stronach, the founder of Magna International, is originally from Styria, adding a personal touch to the partnership between the two companies. As production of the Xpeng P7+ and Xpeng X9 gets underway, it is expected to create new jobs and boost the local news in Graz.
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