XPeng announced plans to double its overseas sales this year, aiming for international markets to account for 20% of revenue. As part of this expansion, it will launch its G6 and G9 models in Mexico on March 25, marking its latest step into Latin America and reinforcing its focus on global growth.

The move comes amid slowing demand and intense price competition in China. XPeng recently reported its first-ever quarterly profit, joining rivals like Nio, Li Auto, and Leapmotor in reaching profitability. The strong fourth-quarter results were driven in part by higher-margin models such as the P7 sedan.

Despite the profit milestone, XPeng issued a weak first-quarter forecast, projecting revenue and vehicle deliveries below market expectations. Shares fell nearly 5% in U.S. trading following the announcement, reflecting investor concerns over domestic market weakness and declining electric vehicle registrations in China.

To counter this domestic slowdown, XPeng is accelerating its overseas expansion while also licensing technology to other automakers and rebranding itself as a “physical AI” company.

A partnership with Volkswagen will see new EVs developed in China using XPeng’s propriatary technology, supporting the company’s long-term goal of generating 70% of profits from international markets by 2030.