May 17 2024: Xpeng, a Chinese electric vehicle manufacturer, voiced its concerns on Friday regarding the new U.S. tariffs on Chinese EVs, citing their detrimental impact on achieving carbon neutrality and transitioning to green energy.
Brian Gu, Xpeng’s co-President, expressed his hope for a more open stance from the United States, allowing global products to enter and compete in the U.S. market. He made these remarks in Hong Kong, where Xpeng has partnered with Malaysia’s Sime Darby Motors to sell its electric sports utility vehicle, the G6, and flagship seven-seater, X9, as part of its expansion beyond China’s saturated car market.
Amidst fierce competition and sluggish demand domestically, Chinese car manufacturers are increasingly focusing on expanding overseas to mitigate the challenges they face.
However, this expansion is met with challenges such as an anti-subsidy investigation by the EU into EV imports from China, coupled with recent U.S. tariff hikes announced earlier in the week.
Gu highlighted the importance of assessing the flexibility and margin adjustments necessary to navigate changes in tariffs, particularly in different regulatory environments. Xpeng is evaluating the potential impact of EU tariffs and considering shifting production overseas accordingly.
Despite these challenges, Xpeng continues to expand its presence in Europe. It currently sells EVs in the Netherlands, Norway, and Germany and plans to enter additional European markets like Italy and the UK. The company recently announced its entry into the French market despite the looming tariffs, underscoring its commitment to international growth despite regulatory hurdles.