Xpeng sold 7,300 cars in Europe in the first three months of 2026, while vice-chair Brian Gu argued that Chinese manufacturers would compete on quality and differentiation in developed markets rather than cutting prices, contrasting with the domestic Chinese market where 129 competitors triggered a price war. The company has a contract manufacturing deal with Magna and is evaluating offers to buy European plants, though Volkswagen’s offered German facility was described by another Xpeng executive as “a little bit, I would say, old.”