Chinese electric vehicle manufacturer Xpeng is in talks with German automaker Volkswagen about purchasing a factory in Europe, according to reports. The potential acquisition would represent a significant expansion of Xpeng's manufacturing footprint beyond China.

The discussions come as Chinese EV manufacturers increasingly look to establish production facilities closer to key international markets. European markets have become particularly important for Chinese automakers as they seek to diversify beyond their domestic base.

Xpeng, one of China's leading electric vehicle startups, has been expanding its international presence in recent years. The company currently operates manufacturing facilities in China and has been exploring opportunities to establish production capabilities in other regions.

Volkswagen has been restructuring its global operations as it transitions toward electric vehicle production. The German automaker has been working to optimize its manufacturing network and reduce costs as it competes in the rapidly evolving EV market.

Neither company has officially confirmed the details of the discussions or provided a timeline for any potential agreement. The talks reflect broader trends in the automotive industry as traditional and new manufacturers adjust their strategies for the electric vehicle transition.