Chinese electric vehicle giant Xpeng is exploring the possibility of creating manufacturing plant in Europein response to recent tariffs imposed by the European Union on car imports from China.
The company is located in preliminary stages of selecting a production site in the EUThis strategic move comes shortly after the formation of a key partnership with Volkswagen Group, indicating Xpeng’s desire to strengthen its presence in the European market.
When evaluating potential locations, Xpeng prioritizes countries that offer “low employment risks.” The company isn’t just thinking about manufacturing; it’s also considering its plans creation of a large data centerwhich is necessary to manage the flow of information generated by complex software systems in vehicles. This vision reflects the growing importance of digitalization and connected services in the automotive sector.
Xpeng’s initiative is part of a wider trend that other Chinese manufacturers such as BYD, Chery and Zeekr (part of the Geely group) are also seeing. adopt similar strategies to mitigate the impact of European tariffsThey range from 17.4% to 38.1%, with Xpeng currently having a rate of 21.3%.
The EU’s decision to impose tariffs on Chinese cars is not an isolated incident. Abroad, the United States has imposed tariff barriers of up to 100%, a move that Canada has followed suit. Just yesterday, Ottawa announced similarly tough measures against a wide range of Chinese products, from batteries to solar panels, with electric vehicles being hit hardest. subject to 100% tariff.
These actions reflect growing global concern over the Chinese government’s supportive policies into their auto industry. By manufacturing directly in Europe, Xpeng and its Chinese competitors are seeking not only to avoid tariffs but also Strategically position yourself in the key electric vehicle market. Xpeng’s potential expansion of production in Europe marks a pivotal moment in the evolution of the global automotive landscape, highlighting how trade tensions are changing companies’ strategies in the electric mobility sector.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.