XPeng: EU Tariffs Won't Deter Chinese Electric Vehicle Expansion

XPeng, the Chinese electric vehicle manufacturer, stated on Friday that the European Union’s tariffs on vehicles produced in China have exerted significant financial pressure; however, these measures will not dissuade the company from pursuing opportunities within the European market.

In October, Brussels opted to introduce tariffs as high as 35.3 percent on imported Chinese electric vehicles, arguing that these subsidies provide an uneven playing field for their European competitors.

The tariffs are 'a challenge we must address... they have significant economic implications,' according to Brian Gu, the vice chairman and president of XPeng, speaking during the inauguration of a new store in Hong Kong.

The company, headquartered in Guangzhou, announced last month that it plans to expand its reach to 60 countries and regions this year—a move that reflects the ongoing globalization efforts within China’s electric vehicle industry.

Gu informed AFP that the tariffs "are not stopping us from pursuing the European opportunity," and emphasized, "We continue to view it as a crucial market."

He stated that being locally focused helps reduce many of these tariffs and instances of protectionism.

After many years of substantial backing from Beijing, Chinese electric vehicle makers have stepped up their rivalry within the country and are keen to secure a competitive advantage through international expansion and technological advancements.

China’s leading electric vehicle manufacturer, BYD, experienced an uptick in its stock prices on Tuesday following the announcement of innovative battery tech capable of charging a vehicle as quickly as filling a gas-powered car.

Autonomous driving tech — typically categorized into five levels, where L5 signifies complete automation without requiring any input from human operators — is likewise turning into a crucial arena for automobile manufacturers in China.

"The technology is advancing at an accelerated pace," driven by stronger processors and progress in AI, according to Gu. He also mentioned that L4 vehicles might start mass production as early as next year.

In the meantime, the United States kept a full 100 percent tariff on electric vehicles imported from China and concluded a regulation in January that essentially excluded Chinese tech from American automobiles.

In April 2024, XPeng launched its operations in Hong Kong and has since encountered strong competition from both domestic competitors and well-established brands like Tesla.

Nearly 500 XPeng vehicles were newly registered in Hong Kong last year, according to official data, placing them behind other Chinese brands like SAIC's Maxus and Geely's Zeekr.

During its store opening on Friday, the company announced that it would introduce its luxurious seven-seat model, the X9, to Hong Kong.