XPENG is accelerating its international growth strategy with plans to establish dedicated, localized supply chain teams in Europe and ASEAN starting in 2026. The initiative represents a significant advancement of the company’s “In Local, For Local” approach, reinforcing its ambition to build fully integrated operations in key global markets.

This move follows the rollout of localized production projects in Europe and Southeast Asia in 2025. By forming independent regional supply chain teams, XPENG aims to directly manage local supplier ecosystems, boost operational efficiency, and significantly enhance supply chain agility. The long-term objective is to enable local production that supports global supply, strengthening both resilience and competitiveness across XPENG’s worldwide industrial network.

The establishment of regional supply chain teams marks the final piece in XPENG’s comprehensive overseas localization framework. Over recent years, the company has laid strong foundations through three overseas production projects, a European research and development center, a Middle East spare parts warehouse, and upcoming local data centers. Integrating supply chain management into this structure effectively closes the “localization loop,” linking production, R&D, service, data, and procurement into a cohesive operating model.

This systematic strategy has already delivered measurable results. In 2025, XPENG recorded overseas deliveries of 45,008 units, representing a 96 percent year-on-year increase. The brand’s presence has expanded to 60 countries and regions globally. Looking ahead, Chairman and CEO He Xiaopeng expressed confidence that international markets will account for half of XPENG’s total sales within the next decade.

The localized supply chain model is designed to generate tangible operational and customer-facing benefits. By prioritizing regional sourcing and supporting production hubs such as Malaysia for ASEAN and Austria for Europe, XPENG expects to substantially reduce logistics and transportation costs.

At the same time, drawing on experience from its Middle East parts distribution hub, the new teams will refine regional logistics networks. This optimization is expected to shorten delivery cycles, speed up after-sales support, and improve overall customer satisfaction, creating a stronger foundation for sustained global growth.

The supply chain expansion is also part of XPENG’s broader strategic evolution, centered on globalization, artificial intelligence, and high-end manufacturing. Beyond physical localization, the company is deploying AI technologies across its supply chain operations. Pilot programs covering team management and quality monitoring are already underway, while cost-effective AI inspection solutions and operational expertise are being shared with partners to foster a more collaborative and efficient ecosystem.

In parallel, XPENG is extending its mature automotive supply chain into emerging advanced manufacturing fields, including robotics and flying cars. Notably, around 80 percent of its existing automotive supply chain partners are already involved in these new ventures. This approach enables technology reuse and industrial upgrading, paving the way for next-generation, high-tech mobility products for global consumers.