XPeng targets European expansion and advances proprietary AI chip technology

Chinese electric vehicle manufacturer XPeng is implementing an aggressive expansion strategy for the European market, aiming for one million sales outside of China by 2030. To mitigate the impact of potential EU tariffs, the company is utilizing contract manufacturing through Magna Steyr in Graz, Austria, to produce its G6 and G9 models locally. Additionally, XPeng is expanding its traditional dealership network in Germany, with plans to increase locations from approximately 70 to 110 by the end of the year.

On the technological front, XPeng has entered its ‘three-chip era’ with the activation of its third proprietary Turing AI chip. This development allows the company to transition its autonomous driving and cockpit computing to its own silicon. The Turing chip architecture is designed to handle perception, decision-making, and vehicle control with high redundancy. In models like the G9, the integration of these chips provides approximately 2250 TOPS of computing power. This technological shift is notable for its industry implications, as Volkswagen, which holds a nearly 5 percent stake in XPeng, plans to integrate XPeng’s electronic/electrical architecture into its China-based platforms starting in 2026.