XPeng Inc. (NYSE:XPEV) announced on Tuesday that it will establish independent supply chain teams in Europe and Southeast Asia in 2026, furthering its efforts to localize operations as overseas demand accelerates.
The new teams will manage regional sourcing and supplier relationships following the start of localized manufacturing in both regions next year.
Xpeng stated that the localized structure is designed to expedite procurement decisions, minimize logistics friction, and enhance supply chain flexibility. By shifting sourcing closer to production, the company aims to minimize disruption risk and enhance execution across its markets.
By increasing local procurement and supporting production hubs in Malaysia for ASEAN and Austria for Europe, XPENG aims to reduce logistics and transportation costs.
Drawing on experience from its Middle East parts hub, the company expects shorter delivery cycles and faster after-sales service, improving customer experience in overseas markets.
The move follows a strong year abroad. Xpeng delivered 45,008 vehicles overseas in 2025, representing a 96% increase from the previous year, and now operates in approximately 60 countries and regions. CEO He Xiaopeng said global markets could generate roughly half of the company’s sales within the next decade.
XPENG is also embedding AI across its supply chain, with pilot programs in management and quality monitoring and the rollout of low-cost AI inspection tools to partners.
Beyond vehicles, the company is expanding its automotive supply chain into advanced manufacturing, including robotics and flying cars, with approximately 80% of partners being reused across these initiatives.
XPEV Price Action: XPeng shares were down 2.44% at $21.18 during premarket trading on Tuesday, according to Benzinga Pro data.
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