Xpeng (NYSE: XPEV) aims to reach annual global sales of 1 million vehicles by 2030, with Europe accounting for half, making expanded local production critical to the plan.

Chairman and CEO He Xiaopeng disclosed the target in an interview at the Paris Motor Show on Monday, identifying production capacity as the company's most critical bottleneck in Europe, Bloomberg reported on October 12.

Xpeng is discussing ways to expand output in Austria with contract manufacturing partner Magna International while exploring potential production arrangements elsewhere in Europe.

The reported sales target differs from He's comments earlier this year. In an internal letter on February 24, he set a goal of reaching 1 million overseas sales by 2030, with overseas operations expected to contribute more than 70% of profit.

If achieved, the European target of 500,000 annual sales would exceed Ford's and Opel's respective volumes in the region in 2025. Ford delivered more than 426,000 vehicles in Europe last year, while Opel recorded about 400,000 registrations, according to Bloomberg.

Since entering Europe through Norway in 2020, Xpeng has delivered more than 60,000 vehicles in the region, most of them this year and last, as it continues to expand its European business.

Xpeng wants to build a lasting business by expanding European production rather than relying on imports from China. It pointed to Volkswagen's investments in China as a model. The German automaker is also an Xpeng shareholder and technology partner.

Xpeng has not disclosed how much additional capacity it needs, which countries it is considering or whether the discussions have led to specific investment commitments.

Source link