XPENG confirms Europe and ASEAN supply chain localisation teams for 2026

KUALA LUMPUR: XPENG says it will step up its overseas localisation push in 2026 by establishing independent, localised supply chain teams in Europe and ASEAN, a move the company claims will tighten how it sources parts and supports production in those regions.

The new teams are meant to sit alongside XPENG’s existing overseas footprint, including production, R&D, after-sales service and data operations, to form what it describes as a “closed-loop” that links everything together, from development and manufacturing to parts, service and supply management.

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This comes after XPENG launched localised production projects in Europe and Southeast Asia in 2025. With those in place, the company says the next phase is to have supply chain teams on the ground to secure regional supplier resources, improve response times when issues happen, and reduce dependency on long-distance logistics for day-to-day operations.

XPENG also points to a broader overseas foundation that it says is already in motion, including three overseas production projects, a European R&D centre, a Middle East parts warehouse, and plans for local data centres. The 2026 supply chain teams are positioned as the missing piece that completes that localisation “loop”.

On performance, XPENG says overseas deliveries reached 45,008 units in 2025, which it claims is a 96% year-on-year increase, and that the brand is now present in 60 countries and regions globally. “We are confident that in the next ten years, half of XPENG’s sales will come from global markets,” said Mr. He Xiaopeng, Chairman and CEO of XPENG.

What XPENG says the new structure is meant to achieve

A big part of the rationale is cost and speed. XPENG says local procurement, paired with production hubs it references in Malaysia for ASEAN and Austria for Europe, can reduce logistics and transportation costs compared to shipping components across continents.

The company also says it plans to build on the operational lessons from its Middle East parts hub to optimise regional logistics networks, with the goal of shortening delivery times and speeding up after-sales parts support. In simple terms, the pitch is fewer delays, quicker parts availability, and a smoother ownership experience in markets where the brand is still expanding.

AI in the supply chain, plus a bigger manufacturing ambition

XPENG is also framing the 2026 supply chain push as part of a wider upgrade around “intelligence” and advanced manufacturing. It says it is already running AI pilot applications within the supply chain, including areas like team management and quality monitoring, and that it intends to share lower-cost AI inspection solutions and related operational know-how with supply chain partners.

Beyond cars, XPENG is also linking its automotive supplier base to future programmes such as robotics and flying cars. The company claims around 80% of its automotive supply chain partners can be reused for these newer fields globally, positioning it as a way to extend the same industrial backbone into other product categories, rather than building separate supplier ecosystems from scratch.

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