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Highlights

  • Magna to assemble two XPENG electric vehicle models at Graz, Austria facility starting Q3 2025
  • Marks first Chinese automaker to localize production within Magna’s European complete vehicle operations
  • Partnership includes long-term collaboration framework for future model development beyond initial launches

Magna International Inc. (NYSE:MGA) announced it has entered into a partnership with Chinese electric vehicle manufacturer XPENG to assemble two new electric vehicle models in Europe. Production is scheduled to begin in the third quarter of 2025 at Magna’s complete vehicle manufacturing facility in Graz, Austria. This collaboration makes XPENG the first Chinese automaker to localize production at Magna’s European operations.

According to Magna, the partnership builds on its 125 years of manufacturing expertise and experience producing over 4 million vehicles for global automakers. XPENG’s strategy focuses on accelerating its European presence by localizing production closer to its target markets, aiming to optimize supply chains and improve delivery times.

In an official statement, Magna said, “This agreement represents a key step forward for Magna and XPENG as we collaborate to bring advanced electric mobility solutions to European customers.” The company added that its Graz facility offers the flexibility and technical capability required for the assembly of multiple models across various platforms.

XPENG also emphasized the significance of the collaboration, stating, “Partnering with Magna allows us to leverage its world-class manufacturing capabilities as we continue our expansion into Europe.” The company indicated that the localized production would help it respond more quickly to European market demand.

While financial terms and production volumes have not been disclosed, the agreement includes a long-term collaboration framework, which could extend to additional model developments beyond the initial two vehicles.

Analysts note that the delayed start of production means revenue impact for Magna from this project will not materialize until late 2025 or early 2026. However, the deal enhances Magna’s client base and further positions its European operations to support the growing electric vehicle market.

Magna’s Graz facility has previously produced vehicles for several major OEMs, including traditional and electric models. The XPENG partnership continues Magna’s strategy of acting as a contract manufacturer for global automakers seeking flexible, high-quality European production capacity.