Canada’s Magna International (MGA) has signed a deal to assemble two electric vehicle models for Chinese automaker Xpeng (XPEV) in Europe.
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Financial terms of the deal have not been made public, but production of the Xpeng models in Europe is expected to begin before the end of the current third quarter on Sept. 30. Magna International said that the agreement marks the first vehicle assembly it will carry out for a Chinese automaker at its manufacturing plant located in Graz, Austria.
Xpeng said the partnership with Magna is a first step toward growth in Europe, which it has targeted as a key sales market. Magna International has more than 300 manufacturing operations around the world and also assembles vehicles for automakers such as Toyota Motor Corp. (TM).
European Push
Several Chinese electric vehicle makers are pushing into the European market as they grow beyond their home market and expand outside of Asia. The race to gain global market share has been heating up among Chinese automakers that include not only Xpeng but also Nio (NIO) and BYD (BYDDF).
Xpeng reported August deliveries of 37,710 electric vehicles. The company’s first-half 2025 deliveries of 197,200 electric vehicles exceeded their entire 2024 sales. Management at Xpeng has said that they’re on track to exceed 400,000 electric vehicle sales in 2025.
For its part, Magna International has built more than four million vehicles worldwide.
Is MGA Stock a Buy?
The stock of Magna International has a consensus Hold rating among 13 Wall Street analysts. That rating is based on three Buy, nine Hold, and one Sell recommendations issued in the last three months. The average MGA price target of $44.85 implies 3.76% downside from current levels.
