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Magna Steyr Starts SKD Assembly of Xpeng G6 and G9 in Graz

The SKD model cuts EU special duties for Xpeng, helping Magna redeploy underused capacity.

Overview

  • Magna confirmed production began on September 15, 2025, marking its first European partnership with a Chinese OEM and the start of a stated long‑term collaboration.
  • Xpeng ships pre-assembled kits from China for final assembly in Austria, a SKD approach reported to avoid the 21.3% EU special tariff on finished Chinese EVs and leave the standard 10% duty.
  • Initial output covers the G6 and G9 electric SUVs, and multiple outlets report that additional models such as the P7+ are planned, although neither company disclosed volumes or timelines.
  • Magna’s Graz plant is seeking new programs after recent declines and winding down of contracts, including the end of Jaguar I-Pace production and BMW and Toyota programs set to conclude in 2026.
  • Xpeng frames the move as a step in its European expansion, highlighting an R&D center in Munich, roughly 8,000 sales in H1 2025 across Europe, and 800‑volt fast‑charging technology in the G6 and G9.