XPeng Set to Localise Its Supply Chain Outside China

XPeng is stepping up its global localisation push, with plans to set up independent supply chain teams in Europe and ASEAN from 2026.

The move comes after the company began rolling out local production projects in Europe and Southeast Asia last year, and is aimed at giving XPeng greater control over sourcing and supplier management in key overseas markets.

By localising its supply chain, XPeng is looking to complete a closed-loop operation overseas, linking production, R&D, service, data infrastructure and supply chain functions under one regional structure.

The new teams will focus on building and managing local supplier networks, reducing reliance on long-distance logistics while supporting regional production for both local and export markets.

XPeng already has a growing footprint outside China, including overseas production projects, a European R&D centre, a parts warehouse in the Middle East and plans for localised data centres. Adding supply chain teams is seen as the next logical step in that expansion.

The strategy appears to be paying off. XPeng delivered 45,008 vehicles overseas in 2025, up 96% year-on-year, and now operates in 60 countries and regions.

Looking further ahead, chairman and CEO He Xiaopeng has said the company expects international markets to account for half of its total sales within the next decade.

On the cost side, local sourcing is expected to help cut logistics and transportation expenses, particularly by supporting regional production hubs such as Malaysia for ASEAN and Austria for Europe.

It should also translate into faster deliveries and better after-sales support, as regional logistics networks become more streamlined. XPeng is drawing on experience gained from running its parts hub in the Middle East.

Beyond physical localisation, the company is also bringing AI into its supply chain operations, with early pilots focused on team management and quality checks.

At the same time, XPeng is extending its automotive supply base into new areas such as robotics and flying cars, reusing about 80% of its existing supply chain partners for these projects.

The approach highlights how XPeng is trying to turn its automotive supply chain into a broader advanced manufacturing platform, as it looks beyond traditional car production for its next phase of growth.