2026 is the year XPENG takes their supply chain ‘local’ for the export scene.
XPENG is taking a decisive step in its global expansion by establishing dedicated, localized supply chain teams in Europe and ASEAN in 2026. This move deepens the company’s “In Local, For Local” strategy, building on its existing overseas production, R&D, service, and data infrastructure to form a complete operational closed-loop in key international markets.
Strategic Continuity: Closing the “Localization Loop”
The formation of localized supply chain teams marks the latest step in XPENG’s systematic overseas strategy. The company has already laid a comprehensive foundation with three overseas production projects, a European R&D center, a Middle East parts warehouse, and plans for local data centers. This new initiative integrates production, R&D, service, data, and now, supply chain management.
The strategy is delivering strong results. In 2025, XPENG’s overseas deliveries soared to 45,008 units, a remarkable 96% year-on-year increase. The brand is now present in 60 countries and regions worldwide. XPENG Chairman and CEO, Mr. He Xiaopeng, has expressed confidence that within the next ten years, half of the company’s sales will come from global markets.
Driving Efficiency and Cutting Costs
The localized supply chain structure is designed to create tangible benefits:
- Cost Reduction: By fostering local procurement and supporting production hubs in locations like Malaysia for ASEAN and Austria for Europe, XPENG aims to significantly lower logistics and transportation costs.
- Enhanced Experience: Leveraging experience from its Middle East parts hub, regional teams will optimize logistics networks to shorten delivery times and accelerate after-sales service, directly enhancing customer satisfaction.
AI Empowerment and Advanced Manufacturing
Beyond physical localization, XPENG is driving intelligent transformation by deploying AI across the supply chain. Pilot applications in team management and quality monitoring are already underway. Furthermore, XPENG is leveraging its mature automotive supply chain to explore new frontiers in advanced manufacturing, including robotics and flying cars.
Impressively, 80% of partners from XPENG’s automotive supply chain are being reused in these new ventures. This industrial extension charts a new path for upgrading the automotive supply chain into high-end manufacturing, promising more technologically advanced products for consumers globally.
