Xpeng will expand into Germany, France U.K.

MUNICH – Chinese EV start-up Xpeng will begin sales in Germany, France and the U.K. in 2024.

Xpeng, which has Volkswagen Group has an investor, already sells in Scandinavian markets and the Netherlands.

The automaker will sell its G6 midsize SUV, G9 large SUV and P7 large sedan in Germany and France, and will develop a right-hand-drive version of the G6 for the U.K.

The  move into Germany marks an important moment in Xpeng's ambitions in Europe after launching in smaller, more EV-friendly markets, Brian Hu, Xpeng president, said at the Munich IAA mobility show on Monday.

"Germany is the most important market by defined by size and by the standards set by all carmakers," Hu said. "Success in Germany will define our success in Continental Europe."

Dealer partnerships

Xpeng will go with the "classic dealer model," Hu said of its move into Germany.

Although the company has followed Tesla in many respects of its digital-led vehicle development, it has not copied Tesla's direct sales approach and instead forged partnerships with local dealer groups.

Xpeng launched in Europe in Norway with the G3 compact electric SUV in 2020, but has since focused on larger, more premium models such as the G9 and P7 after expanding to Sweden, Denmark and the Netherlands.

Deliveries of the G9 have just begun in Europe, Hu said.

Xpeng captured global attention in July when VW Group said it would take a 4.99 percent stake in the company to help VW maintain its position in China against nimbler homegrown rivals.

VW will invest around $700 million in Xpeng and take a seat on the company's board. The partnership will start with the joint development of two larger China-only EVs to be sold by the VW brand.

The two EVs will be based on Xpeng's G9 'Edward' platform. The cars will be rolled out in China starting in 2026.

"The partnership gives us a great opportunity to develop a product offering tailored for Chinese customers from China for China," VW Group CEO Oliver Blume said in July.