The Chinese car manufacturer Xpeng Motors is seeking a manufacturing site in Europe to produce its electric vehicles (EVs), aiming to mitigate the impact of the tariffs that the European Commission plans to impose on EVs imported from China to the European Union (EU).
According to statements made by the company’s CEO, Xiaopeng He, in an interview with Bloomberg, Volkswagen Group’s Chinese partner is in the early stages of selecting a site in the EU as part of its future plan to localise vehicle production.
The company aims to develop capacity in areas with “relatively low labour risks,” he stated, adding that Xpeng also plans to establish a large-scale data centre in Europe, as efficient software collection becomes crucial for the smart driving functions of its cars.
In the interview, he also pointed out that the increase in tariffs does not affect Xpeng’s plans to go global, although he noted that their “profits in European countries will be reduced after the increase in tariffs.”
Establishing a manufacturing presence in Europe would see Xpeng join the growing ranks of Chinese electric vehicle manufacturers, including BYD, Chery Automobile, and Zeekr, who are looking to ramp up production in the region to minimise the impact of the European Union’s decision to raise tariffs on electric vehicles manufactured in China to as much as 36.3%.
Xpeng will face an additional tariff of 21.3%.
The European levies are part of a broader global trade dispute, in which the United States has imposed tariffs on imports of electric vehicles from China that can exceed 100%, and this Monday, Canada followed suit by replicating the United States measure and adding an additional 100% tax on such vehicles.
Xpeng delivered around 50,000 vehicles in the first half of the year, only about a fifth of BYD’s monthly sales, and while its delivery outlook for the current quarter exceeded analysts’ estimates, its projected revenue fell well short of expectations, according to its latest quarterly report.
