Chinese electric vehicle maker Xpeng has stated it is unaware of a reported agreement with Magna Steyr to assemble its vehicles in Austria. This response follows speculation that Magna Steyr’s Graz facility is preparing for semi-knocked-down (SKD) assembly of Xpeng EVs.

This assembly process could help Xpeng avoid European Union import tariffs by completing the final stages of production within Europe.

The rumors arise as Chinese automakers face increasing pressure to localize production in Europe. The EU recently launched an investigation into subsidies for Chinese EVs, which could lead to higher tariffs on imports.

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