On July 16th, Xpeng Motors held a brand day event and a global launch press conference for its MONA L03 model in Munich, Germany.
According to AFP, in an interview on that day, He Xiaopeng, Chairman and CEO of Xiaopeng Group, said that the company is accelerating its expansion into the European market and is currently researching the possibility of using factories with high idle capacity from German automakers for production.
"Many European countries have the potential to host numerous factories," he said, "Of course, most of these factories are still located in Germany at present."
But He Xiaopeng simultaneously emphasized that the discussion on potential new cooperation projects in Europe is currently still at an early stage.
He revealed that Xpeng Motors is currently working with Austrian auto manufacturing company Magna Steyr to produce cars in Europe. In the future, they hope to increase their investment in Europe further.
We are happy to cooperate with many enterprises, including those targeting the general public," he told the media. "We hope that in the future, not only will we have a factory in Europe but also multiple factories of different types, while simultaneously undertaking various research and development projects across different fields—some focused on automobiles, some on robotics, encompassing a wide range of business activities.”
On the 16th, Xpeng Motors held its brand day event in Munich. Xpeng Motors’ X account
In recent years, affected by US tariffs, declining profit margins of pure electric vehicles, and fierce competition from Chinese companies, the German automotive industry has been under continuous pressure. To avoid costly and controversial decisions to close factories, local automakers have been seeking ways to manage excess production capacity.
Recently, Volkswagen's CEO Herbert Diess stated that the company may need to shut down four factories in Germany and plans to carry out mass layoffs. In April of this year, he also mentioned that Volkswagen’s factories located in Europe might in the future produce cars for Chinese partners.
Reports indicate that Dongfeng Volkswagen currently holds a 4.99% stake in Xpeng Motors. The two parties are also collaborating in the Chinese market to develop new models targeting local consumers.
On July 15th local time, German Chancellor Merz said that he does not oppose Chinese automakers taking over the troubled German automobile factories. However, he pointed out that this can only serve as an ‘emergency measure’ and cannot fundamentally solve the structural problems faced by Germany's automobile industry.
According to data from the automotive market research organization Dataforce, in May of this year, Chinese brands such as BYD, Geely, and Chery accounted for nearly 11% of the European automotive market. A few years ago, this proportion was less than 3%.
Xpeng Motors also maintained rapid growth in the European market. In the first half of this year, the company delivered 31,000 vehicles in Europe, nearly doubling the previous year’s figure. The delivery volume in Germany increased by nearly three times.
In fact, not only German car companies but also other European automakers have been strengthening their cooperation with Chinese enterprises in recent years.
In May this year, the European automotive giant Stellantis announced that it would deepen its strategic partnership with China's Leap Race Automotive. The specific cooperation includes opening a factory in Spain to Leap Race Automotive, and both parties will jointly produce an electric vehicle.
