XPeng is making decisive moves in its global strategy, with CEO He Xiaopeng clearly signaling that European expansion stands as a cornerstone of the company’s future. Despite limited visibility in Hong Kong’s automotive landscape, the Chinese EV manufacturer views the city as a strategic gateway to international markets. This approach was on full display when XPeng chose Hong Kong’s Kai Tak Cruise Terminal for the global launch of its 2025 X9 model — marking the company’s first-ever international product reveal.
The event attracted significant media attention and served as a platform for XPeng to articulate its international ambitions. Between presentations highlighting the X9’s capabilities, XPeng organized focused media sessions addressing both technological innovations and its international expansion strategy.
XPeng’s domestic performance has shown remarkable improvement since mid-last year. Following the introduction of new models like the MONA M03 and P7+, the company reversed its sales decline, achieving five consecutive months exceeding 30k vehicle deliveries. He Xiaopeng projects continued strengthening of the company’s gross margin, with profitability expected by Q4 2025.
XPeng P7+
Currently, overseas sales represent approximately 10% of XPeng’s total volume of 190,000 vehicles sold in 2024. According to MarkLines data, the company has established footholds in Denmark, Norway, the Netherlands, and select Middle Eastern countries including Israel. However, XPeng’s ambitions extend much further—targeting international sales to constitute over 50% of total volume within a decade.
“Establishing local production capabilities in Europe isn’t just advantageous—it’s essential for XPeng Accelerates International Expansion,” stated He Xiaopeng during the media briefing. The CEO emphasized that manufacturing within European borders would allow the company to sidestep tariffs, reduce logistics costs, and adapt more effectively to regional regulations.
The company has begun exploring potential manufacturing sites across several European countries, though specific locations remain undisclosed. Industry analysts suggest XPeng may initially seek manufacturing partnerships before investing in dedicated facilities, following a staged approach similar to other Chinese automakers entering European markets.
“Our technology and design have proven competitive globally, but XPeng Accelerates International Expansion only when we match that with localized production and service networks,” the CEO concluded.
When asked about timeline expectations for European manufacturing, company representatives indicated planning is already underway, with concrete announcements expected within 18 months.
In Europe’s increasingly crowded EV landscape, XPeng’s expansion strategy will need to overcome both regulatory hurdles and established competition. However, if successful, the approach could position the company to truly Xpand its global market share.
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