XPeng in early talks with Volkswagen on European factory as Austrian plant runs out of capacity

Summary: Xpeng is negotiating with Volkswagen and other automakers to acquire European manufacturing facilities as its Austrian contract production capacity reaches saturation. The Chinese EV maker’s April exports surged 62.24% year-on-year to 6,006 vehicles. Xpeng currently produces vehicles at Magna Steyr in Austria but requires additional capacity for new models. Volkswagen, facing reduced demand and restructuring, is reducing annual capacity by 750,000 vehicles by 2030 and considering allowing Chinese partners to utilize excess European facilities.