Magna to build Xpeng and GAC EVs at Graz facility
Magna expands its footprint in the electric vehicle (EV) sector with two major new contracts to assemble models for Chinese automakers Xpeng and GAC
The move marks an important milestone as Chinese brands push deeper into the European market and seek localised production strategies to avoid tariff burdens, enhance competitiveness and reduce logistical complexity.
Magna has reportedly started assembly, on a semi-knock down basis, of two fully electric vehicle models on behalf of Xpeng at its Graz plant.
“We are thrilled to collaborate with Xpeng, marking a significant milestone as our first Chinese OEM partner here in Europe,” said Roland Prettner, President of Magna Complete Vehicles.
The partnership aligns with Xpeng’s broader global strategy to gain a foothold in Europe through localised manufacturing and distribution. “Our partnership with Magna fits perfectly in our vision and strategy to strengthen our European capabilities,” said Brian Gu, Vice Chairman and President of Xpeng. “It is a first step in our growth in Europe as we have a long-term commitment to Europe”.
In addition to the Xpeng deal, Magna has reportedly secured a contract with another Chinese automaker, GAC (Guangzhou Automobile Group), although specific details on the GAC models have yet to be officially disclosed.
Magna’s Graz facility has long been a cornerstone of its contract manufacturing operations, producing vehicles for major global brands. With over 125 years of manufacturing experience, Magna has produced more than 4m vehicles and developed more than 40 complete vehicles and derivatives. This new contract will undoubtedly be a boost to the Graz plant, which has seen a decline in production in recent years with JLR ending I-Pace production and other OEM contracts due to end next year.
