Xpeng Inc. expands its European presence

Chinese electric vehicle (Electric vehicle) manufacturer Xpeng Inc. is actively seeking a manufacturing site in Europe to mitigate the impact of import tariffs and strengthen its position in the global market. This strategic move follows similar initiatives by other Chinese EV companies, including BYD and Chery.

XpengThe company’s CEO, He Xiaopeng, has confirmed that the company is in the initial stages of selecting a location within the European Union for its future manufacturing plant. The company is prioritizing regions with lower labor risks and plans to establish a large-scale data center to support the development of intelligent driving functions.

While the increase in tariffs imposed by the European Union on Chinese electric vehicles will affect Xpeng’s profitability, the company remains committed to its global expansion plans. The establishment of a European manufacturing plant is expected to help minimize the negative effects of the tariffs.

In addition to tariff issues, Xpeng has faced other obstacles such as weak domestic sales, disputes over product planning, and a competitive price war in the Chinese market. These factors have contributed to a significant drop in the company’s share price.

Despite these challenges, Xpeng has achieved some positive results, such as its partnership with Volkswagen AG, which has enabled improved supply chain management and increased profitability.

Xpeng’s expertise in artificial intelligence and advanced assisted driving features is also a key advantage. To leverage this expertise in the European market, the company plans to establish a large-scale data center.

Looking ahead, Xpeng believes that AI-powered vehicles will play a crucial role in the future of the automotive industry. The company aims to be a leader in this space by developing innovative products and technologies.

(With contributions from the Agency)