China's electric vehicle maker Xpeng has set a goal of reaching annual global vehicle sales of 1 million units by 2030. It plans to secure 500,000 sales in Europe, half of the total, a move expected to intensify competition with local automakers.

InsideEVs reported on Oct. 14 that Xpeng CEO He Xiaopeng (허샤오펑) said in a recent meeting with Bloomberg at the Paris Motor Show in France that the company has such a mid- to long-term sales target. Xpeng delivered 429,445 vehicles globally last year. To meet its 2030 target, it would need to more than double annual sales from current levels.

The 500,000 annual sales target for Europe exceeds Ford's European sales of about 426,000 last year. It is also higher than Opel's sales last year of about 400,000.

But the hurdles to meeting the goal are high. Since entering the European market in 2020 starting with Norway, Xpeng has delivered only about 60,000 vehicles cumulatively.

Xpeng has presented expanding local production in Europe as a key strategy. It currently outsources production of some EVs to a Magna plant in Graz, Austria, but it judges the plant lacks sufficient capacity to meet demand expected to surge.

Xpeng vice president Yeqing Zheng (예칭 정) said, "Output from the existing Magna plant alone is not enough." He added, "We will work with European companies to secure additional production facilities."

European Union requirements to localise EV production and source parts are also behind the push to expand production. Xpeng plans to respond to regulatory changes by expanding production and building supply chains in Europe rather than relying on imports of finished vehicles made in China.

The location of any additional plant and the size of investment have not been decided. Securing local production capacity and expanding sales networks are expected to determine whether Xpeng meets its European market target.