Chinese electric vehicle manufacturer Xpeng denounced the newly imposed U.S. tariffs on Chinese EVs, labeling them as detrimental to global efforts toward carbon neutrality and the green energy transition. Xpeng co-President Brian Gu expressed his concerns, stating, “We hope the United States can become more open, allowing global products to enter and compete in the U.S. market.”
Gu made these remarks in Hong Kong during an event where Xpeng, in collaboration with Malaysia’s Sime Darby Motors, announced the sale of its electric sports utility vehicle, the G6, and its flagship seven-seater, the X9. This move signifies Xpeng’s strategic expansion beyond mainland China’s saturated car market.
Chinese automakers are facing challenges such as a cut-throat price war in China and sluggish domestic demand, prompting them to seek growth opportunities abroad. However, their international expansion efforts are being clouded by an anti-subsidy investigation initiated by the EU into EV imports from China, the world’s largest car market. Additionally, the recent U.S. tariff hikes further complicate their overseas strategies.
Gu highlighted the uncertainties brought by these tariffs, saying, “What are the flexibility or room for margins that we can have in order to meet changes in tariffs in other regimes.” He added that the company was still evaluating the potential impact of EU tariffs that could compel Xpeng to shift its production overseas.
Despite these challenges, Xpeng has been actively expanding its presence in Europe. The company currently sells EVs in the Netherlands, Norway, and Germany, with plans to enter other European markets, including Italy and the UK. Earlier this week, Xpeng announced its entry into the French market, undeterred by the impending tariffs.
Xpeng’s criticism of the new U.S. tariffs underscores the growing complexity of the global EV market, with manufacturers navigating various trade barriers and regulatory challenges as they strive to achieve sustainable growth and support the transition to greener transportation solutions.
