Tue Oct 08 00:22:10 UTC 2024: ## Chinese EV Maker Xpeng Expands Globally, Eyes Local Production in Europe to Avoid Tariffs
Chinese electric vehicle startup Xpeng is aggressively expanding its reach, targeting nearly 40 new countries in 2024, including major European markets. This ambitious move comes amidst potential EU tariffs on Chinese-made EVs, leading Xpeng to explore local production in Europe to avoid hefty taxes.
The company plans to launch sales in countries across Europe, Southeast Asia, and Australia. However, the looming EU tariffs, potentially adding a 21.3% tax on top of the existing 10%, could significantly impact Xpeng’s European ambitions.
Xpeng’s vice chairman and co-president, Brian Gu, confirmed the company is considering various production options in Europe, including contract manufacturing, utilizing existing plants, and even building new facilities.
“Being more local is not only because of the tariffs,” Gu emphasized. “We have to aspire to be a leader in a market like Europe. We have to think about becoming more local, having a local team, building a local brand, and having a local presence.”
Gu also acknowledged Xpeng’s interest in the US market, but cautioned that current policies present challenges for Chinese companies.
Xpeng’s global expansion strategy, particularly its European push, hinges on its ability to adapt to local preferences and navigate the complex regulatory landscape. The company’s decision to localize production reflects its commitment to becoming a global player and competing effectively in the fiercely competitive electric vehicle market.
First Piper 