With the United States and Canada imposing tariffs of up to 100% on many Chinese products, including electric cars, trade tensions are inevitably changing the strategies of companies. The measures reflect growing concern around the world about the Chinese government’s support policies for domestic industry. How will Chinese manufacturers react to this delicate period? Establishing plants in Europe seems to be the most logical response. In this way, they could escape tariff barriers, as well as consolidate their presence in a strategic market. This strategy has been taken into consideration by the Xpeng brand.
High tariffs? Xpeng produces in Europe
Due to tariffs ranging from 17.4% to 38.1% on the import of vehicles from China, car manufacturers such as Xpeng, BYD, Chery and even Zeekr are forced to completely reconsider their plans. Xpeng has therefore made a strategic move. It has started production directly in Europe. Why continue to depend on imports when it is possible to circumvent the tariffs? Has Europe taken into account a possible industrial growth, even if not “homegrown”?
In an interview, CEO He Xiaopeng confirmed that the company is in the early stages of selecting a site in Europe. The “low work-related risks” are a determining factor in the choice of location, but the company is not limited to production alone. In fact, among the projects there is also the creation of a European data center to manage the sophisticated software of the vehicles. This additional project is a sign of the growing and evident importance of digitalization among cars. Xpeng is not alone in its plan, there are other names that resonate in the auto sector in this regard. It recently entered into a strategic partnership with Volkswagen, a move that consolidates its ambitions to strengthen its presence in the European automotive sector. This alliance, combined with the production expansion, is a key moment for the company. Will Xpeng be able to challenge the car giants in Europe?
