Xpeng to build its electric cars in Europe to avoid import duties

Speng has a plan to avoid recent European tariff increases on electric vehicles imported from China: they are produced in the European UnionThe Asian automaker’s CEO He Xiaopeng confirmed this. Bloomberg who began to analyze places on the Old Continent where they could build a factory to produce their cars.

Xpeng’s leader did not specify where in Europe they would start producing their electric vehicles. This is because the process is in early stagealthough he acknowledged the goal is to find a country with “relatively low” occupational risks.

An interesting point that He Xiaopeng mentioned is that Xpeng’s strategy is not only to set up a production line in the European Union. The Chinese firm also intends to build a next generation data center to offer its most outstanding software features in the region.

Let’s keep in mind that Xpeng is far from the most successful electric vehicle maker in China. However, the company has gained notoriety for developing a fairly advanced driver assistance platform known as XNGPIn fact, some argue that this is the closest thing to a fully self-driving Tesla that exists today.

It is currently unknown how much of this system might be offered to European users, given that they will likely be subject to regulatory approval before they can be used on EU roads.

Xpeng’s plan to avoid tariff hikes

Last June, the EU announced a sharp increase in import duties on Chinese-made electric vehicles. Not all Asian brands producing this type of vehicle were hit equally, as the percentage applied varied depending on their market presence and level of cooperation.

Rates for BYD vehicles, for example, were 17.4%, while for other manufacturers they were 20 and 21%. In the most extreme scenario, tariffs reached 38.1%. In the case of Xpeng, import duties on its cars rose to 21.3%.. A very strong increase, but still far from what the US has set, which raised tariffs on Chinese electric cars from 25 to 100%.

Finding a place to manufacture its cars in the European Union may be easier than Xpeng thought. The company already has connections with one of the most iconic car companies in both the European and global markets: Volkswagen. In 2023, the Wolfsburg natives bought 5% of the Asian manufacturer for $700 million. The Germans will make two mid-size electric cars for China with the help of Xpeng and will gain access to He Xiaopeng’s technology.

If Xpeng manages to move forward with building an EV plant in Europe, it will also help further its regional expansion plans. As we told you exclusively in HypertextThe brand is preparing to land in Spain. It will do so from September 24 with at least three models: Xpeng G6, G9 and P7. There is even an open form for those who want to test their cars.