China’s XPeng Will Make Money In Europe Even Without Selling Cars

XPeng expects total transaction revenues of more than $149 million based on emissions credit agreements with Porsche and several other international automakers, covering the EU, UK, and Australian markets, confirmed XPeng’s vice president.

XPeng expects to generate more than $74.5 million in revenue from the sale of emissions credits in 2026, representing high-margin revenue. In addition to the emissions credit agreement with Porsche, several international automakers have also voluntarily opted in to XPeng. The $149 million figure is an estimate of the total value of transactions across multiple markets and years, not revenue already generated.

EU regulations allow car manufacturers to pool their fleets so that those whose average emissions are above the target can compensate by working with a manufacturer that is below the limit. The fleet emissions target (the average of all cars sold in a year) is 93.6 grams of CO₂ per kilometer from 2025, with a fine of €95 for each gram above that limit per registered car.

The Volkswagen Group owns about 5% of XPeng, which also provides technical services to the German group. A representative of XPeng’s management cited these previous agreements with Volkswagen as the reason why other carmakers are willing to cooperate with the company.

Let’s add that Stellantis and Toyota have left Tesla’s EU emissions group for 2026. According to published reports, Tesla’s revenue from regulatory credits fell to about $2 billion in 2025, from $2.76 billion a year earlier.

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