Chinese electric vehicle (EV) manufacturer XPeng is evaluating the possibility of investing in plants or suppliers abroad, citing an ongoing European investigation into Chinese-made EVs and regulatory alterations that could lead to higher tariffs.
The European Commission initiated an investigation in October to determine whether Chinese-made EVs benefit unfairly from state subsidies, a move that China has criticized as protectionist.
Brian Gu, co-president of XPeng, stated at the Beijing autoshow that the company currently exports small quantities of its EVs. However, the changing regulatory landscape in the European Union may prompt a reevaluation of its strategy. Gu emphasized that XPeng is adapting to meet market demands, stating, “There’s no strategy that’s fixed in stone. We have to work around what is required to compete there.”
XPeng aims to expand its international business, with its share potentially increasing to around 10% of overall sales this year from about 1-2% last year. Despite viewing the United States as an important market in the long term, Gu acknowledged the current challenges in devising a bold entry plan.
While XPeng is already selling vehicles in the Netherlands, Norway, and Germany, it plans to enter other European markets, including France, Italy, and the UK. Gu highlighted the importance of Chinese products in accelerating the green transition by lowering costs and accelerating the pace of EV adoption.
In terms of technological innovation, XPeng has pledged to invest heavily, contrasting with other Chinese automakers that have been cutting costs amid a price war. The company plans to launch software and artificial intelligence upgrades in May, with hopes of expanding its platform to other Asian countries and Europe.
XPeng’s founder and CEO, He Xiaopeng, expressed optimism about the company’s future developments, including the introduction of a smart EV under the new brand “Mona” and pre-sales for a flying car in the fourth quarter. XPeng’s partnership with Volkswagen, which holds a 4.99% stake in the company, aims to develop a new architecture for intelligent and electric cars to offer more affordable models.
