Xpeng has confirmed that a fourth electric vehicle model will be manufactured at Magna’s facility in Graz, marking another step in the deepening industrial ties between China and Austria’s Styria region.
The announcement came during a visit by a Styrian economic delegation to China, where Xpeng disclosed the new production order on the sidelines of the trip. Magna, already the primary European manufacturer for Chinese electric vehicles, will begin production of the new model by the finish of 2026, according to information shared by Xpeng representatives.
Currently, Magna assembles three Xpeng models for the European market at its Graz plant. The addition of a fourth vehicle underscores the expanding scope of the partnership, which has positioned the Styrian facility as a key hub for Chinese EV exports to Europe.
Styrian officials welcomed the development as validation of their industrial strategy. Governor Mario Kunasek emphasized that the project reflects the region’s strength when anchored by established companies like Magna, citing its reliability and long-standing expertise in vehicle manufacturing.
Deputy Governor Manuela Khom noted that the collaboration has created mutual benefits, describing how technical knowledge from Magna has flowed to China while production capacity has returned to Styria. She characterized the ongoing exchange as a two-way flow of value, where initial investments in knowledge transfer are now yielding tangible industrial returns.
Details about the specific model or production volume were not disclosed by either Xpeng or Magna. The companies have not publicly identified which vehicle from Xpeng’s lineup will be assembled in Graz or how many units are planned for annual output.
The news highlights the growing role of regional suppliers in global automotive supply chains, particularly as Chinese manufacturers seek localized production to meet European demand while navigating trade complexities. For Magna, the order reinforces its position as a contract manufacturer of choice for new entrants in the EV space.
While the expansion brings economic opportunities to Graz, it also reflects broader shifts in how international automakers structure production — relying on specialized European partners to handle assembly, quality control and logistics for markets closer to the end consumer.
What does this mean for Magna’s role in the automotive industry?
Magna continues to function as a contract manufacturer, producing vehicles for foreign brands without branding them under its own name. The Graz facility’s work for Xpeng highlights its expertise in handling electric vehicle assembly for international clients, particularly those seeking localized production in Europe to serve regional markets efficiently.
Why is Styria highlighting this development?
Regional leaders point to the project as evidence that targeted industrial policies — focused on leveraging existing strengths in engineering and manufacturing — can attract high-value international investments. The expansion with Xpeng is framed as a return on earlier efforts to build trust and technical collaboration between Styrian and Chinese partners.