Xpeng seeks new OEM tech licensing deals beyond Volkswagen

Chinese automaker Xpeng is reportedly seeking additional original equipment manufacturer (OEM) partners to license its advanced automotive technologies. This follows its existing technology-sharing partnership with Volkswagen Group, which covers electric vehicle platforms and vehicle software architectures.

According to a Reuters report cited by the source, the Volkswagen deal has improved Xpeng's profitability. This comes at a time when intense competition, particularly in China, is squeezing margins on vehicle sales.

Technology portfolio and AI focus

Xpeng's technology investments extend beyond traditional automotive systems. The company has focused on areas including robotaxis, robotics, and artificial intelligence applications. At the Beijing launch event for its new GL9 SUV, Chairman and CEO He Xiaopeng emphasized the company's AI foundation.

He stated, We believe in 'car as robot', over the past few years, we have built an in-house AI foundation based on our work in AI cars and humanoid robots, and it powers both. The company also commissioned what it calls the world's first automated production line for advanced general-purpose humanoid robots, use a "robots to produce robots" methodology.

New model and production expansion

The GL9, described by Xpeng as its next-generation 'AI Flagship SUV', will be offered in both battery-electric (BEV) and range-extended electric vehicle (REEV) versions. The model, referred to in some contexts as the G9L, is slated for a global launch across 64 markets. A launch event is scheduled for October 12 at the Paris Motor Show.

Production for the GL9 will be split between two locations. It will be manufactured in Guangzhou, China, and also at the Magna Steyr assembly plant in Graz, Austria.

Magna manufacturing partnership

The Graz production marks a significant step in Xpeng's European manufacturing strategy. The GL9 will become the fourth Xpeng model produced at the Magna facility in Austria, following the G6, G9, and P7+ models. These vehicles share assembly lines with other European luxury vehicles at the contract manufacturing plant.

This production capability stems from a cooperation agreement announced with Magna in September 2025. Xpeng has leveraged Magna's established production lines to enable local assembly in Europe, launching four models within a single year of the partnership.

The company describes this as a deepening collaboration with the manufacturing specialist. The move allows Xpeng to produce vehicles locally for the European market, potentially streamlining logistics and adapting to regional requirements.

Xpeng's push for more technology licensing deals represents a strategic shift to monetize its research and development investments. The company is positioning itself not only as a vehicle manufacturer but as a technology provider within the automotive industry's evolving production landscape.