XPeng expands across North Africa

From the newsletter

Chinese electric vehicle automaker XPeng has signed new partnerships with major distributors in Morocco and Tunisia, marking its latest African expansion. They include SMEIA, Morocco’s largest luxury car distributor, and XP Cars Tunisia. The company is expanding its presence across North Africa following its entry into the Egyptian market in June.

• XPeng’s expansion challenges Zeekr’s market dominance by offering advanced EVs at more competitive prices. Its broader regional reach could attract buyers beyond the premium market.

• North Africa’s decent infrastructure and incomes are attracting luxury car makers including Tesla. Meanwhile, South Africa’s market remains in the hands of established brands such as BMW, Mercedes-Benz, Volvo and Porsche.

More details

• With the addition of Morocco and Tunisia, XPeng has completed its North African network, building on its earlier entry into Egypt. The company now enjoys a continuous presence along the Mediterranean coast, a key trade and logistics corridor. This expansion positions XPeng to use North Africa as a launch base for future growth into sub-Saharan markets.

• SMEIA is one of Morocco’s most experienced luxury car distributors, with more than 40 years of experience representing leading global brands. The company holds over 30 percent of the country’s luxury car market and operates a service network that reaches 97 percent of the population. This partnership provides XPeng with a trusted local ally capable of offering premium customer support and strengthening its market credibility.

• XP Cars Tunisia has a strong record of introducing new automotive brands into the Tunisian market. The distributor is recognized for its customer-focused approach, aligning well with XPeng’s commitment to after-sales care and user experience. The collaboration benefits from Morocco’s advanced automotive manufacturing base and Tunisia’s strategic role as a link between Africa and Europe, supporting XPeng’s regional ambitions.

• North African countries like Morocco, Tunisia, and Egypt have stronger infrastructure and higher purchasing power compared to most African nations. Governments in the region have also introduced EV-friendly policies, including tax incentives and charging projects. These conditions make the market attractive for luxury EV makers looking for early adopters and stable demand.

• The luxury EV market in Africa remains small but is slowly growing, driven by a wealthy urban class and rising environmental awareness. Traditional four-wheeler EVs face affordability and infrastructure challenges, limiting mass adoption. Luxury EVs, however, target niche buyers who can afford early technology and are motivated by prestige and innovation.

• Chinese brands like XPeng and Avatr are entering Africa with strong backing from major battery and tech companies, giving them a cost and innovation advantage. Established players such as Mercedes-Benz and Volvo still hold brand trust and dealer networks. Competition will depend on how well Chinese brands balance pricing, service quality, and local partnerships to build credibility.

Our take

• If XPeng begins assembling in North Africa, it could use the region as a strategic export base to Europe due to its proximity and strong trade links.

• The company needs to assess market demand carefully before expanding, ensuring its models and pricing align with local consumer capacity.

• South Africa is a likely next step for expansion, though XPeng will face stiff competition from established luxury EV brands already active in the market.