Xpeng aims to sell an ambitious 500,000 vehicles annually in Europe by 2030, with increased regional manufacturing capacity expected to play a crucial role in delivering the ambitious growth target.

Chairman He Xiaopeng announced the objective in an interview at the Paris auto show on October 13. The Chinese automaker is targeting global annual sales of one million vehicles, with Europe expected to contribute half of that total.

Achieving the target would put Xpeng ahead of established brands such as Ford and Opel, which recorded more than 426,000 and approximately 400,000 European sales respectively last year.

Since launching in Europe through Norway in 2020, Xpeng has delivered more than 60,000 vehicles across the region. Its current European production includes the G6 and G9 SUVs and P7+ sedan, assembled at Magna International’s facility in Graz, Austria.

The company is in discussions with Magna about increasing production and is assessing other manufacturing opportunities across Europe.

He identified production capacity as the biggest obstacle to expanding the business, although Xpeng has not revealed potential investment locations or detailed capacity requirements.

The strategy comes as Chinese manufacturers seek to strengthen their European presence amid softer domestic demand and possible EU measures designed to encourage local manufacturing and supply chains.

Xpeng pointed to Volkswagen’s investments in China as an example of building a long-term regional operation. Volkswagen holds a stake in Xpeng, and the two companies collaborate on vehicle electronics and driver-assistance systems.