XPeng Inc. signed a CO2 emissions pooling agreement with Porsche for 2026 and 2027. This arrangement combines fleet emissions to meet European Union regulatory limits.

The deal will generate additional revenue for XPeng. The Chinese automaker sold nearly 20,000 vehicles in Western Europe during the first half of 2026.

Porsche entered the agreement after departing from the Volkswagen Group’s emissions pool. The partnership provides Porsche with regulatory flexibility during its electric transition.

Financial terms of the agreement remain undisclosed.