Chinese smart electric vehicle company XPENG has launched a state-of-the-art spare parts warehouse in Dubai to serve as its central hub for customers across the Middle East and Africa. The new facility, developed in partnership with JD Logistics, aims to create a more efficient and reliable after-sales service network to support the brand’s regional growth.
The launch event was attended by company executives including Alex Tang, Head of XPENG Global, alongside regional partners such as Saeed Al Dhaheri, Managing Director of Ali & Sons, and Medhat Khalil, Chairman of Raya Holding.
Supporting a Rapidly Growing EV Market
XPENG’s investment is timed to meet the surging demand for electric vehicles in the UAE. The market, valued at $2.2 billion in 2024, is projected to reach $16.3 billion by 2030, with a compound annual growth rate of 41.2 per cent between 2025 and 2030. This makes it the fastest-growing EV market in the Middle East and Africa.
This growth is supported by government policies such as the Dubai Green Mobility Strategy 2030, which is a key part of the city’s wider efforts to develop smart mobility in Dubai. The national UAE Net Zero 2050 initiative also aims for 53 per cent of the country’s vehicle fleet to be electric and hybrid.
Dubai as a Strategic Logistics Hub
Dubai was selected for its strategic location as a logistics gateway connecting Asia, Europe, and Africa. The emirate’s world-class infrastructure, including Jebel Ali Port and a multi-modal transport network, offers significant efficiency for regional distribution. Furthermore, its free trade zones and favourable regulatory frameworks help to streamline customs and support advanced technological operations.
The collaboration with JD Logistics equips the facility with a sophisticated, digitalised inventory management system. This technology provides real-time visibility and uses predictive analytics to maintain optimal stock levels and ensure rapid order fulfilment, reflecting a wider regional focus on innovation and AI.
A Cornerstone of Regional Expansion
The Dubai warehouse is a key component of XPENG’s “Middle East Smart Service Network” and its broader localisation strategy. The company is building a comprehensive regional ecosystem with flagship showrooms already operating in Dubai, Abu Dhabi, and Qatar, and is expanding into markets including Egypt, Morocco, Jordan, and Lebanon.
This facility reinforces a three-pillar strategy focused on innovative products, expanded sales channels through partnerships, and exceptional service. The investment supports XPENG’s global trajectory, which saw it become a top-six global EV player in 2025 and achieve a 339 per cent increase in sales across key overseas markets. The company also became the first Chinese manufacturer to top the 2025 EV satisfaction study, underscoring its commitment to the entire ownership experience.
