Magna International Secures EV Assembly Contract with China’s Xpeng for European Market

Canada's Magna International (MGA) has inked a deal to assemble two electric vehicle models for Chinese automaker Xpeng (XPEV) at its Graz, Austria plant. Production is slated to begin by September 30, marking Magna's first vehicle assembly contract for a Chinese automaker in Europe.

Xpeng views the partnership as a strategic entry point into the European market, where Chinese EV makers like Nio (NIO) and BYD (BYDDF) are aggressively expanding. The company reported strong August deliveries of 37,710 vehicles, with H1 2025 deliveries reaching 197,200 units.

The MOVE underscores the intensifying global competition in the EV sector, as Chinese manufacturers pivot from domestic dominance to international expansion. Magna's 300+ global manufacturing operations, including existing contracts with Toyota (TM), position it as a key enabler of this industry shift.