Xpeng Criticizes New U.S. Tariffs on Chinese EVs, Expands Global Presence

Chinese electric vehicle (E.V.) manufacturer Xpeng has voiced concerns over the recent U.S. tariffs on Chinese E.V. imports, arguing that these tariffs hinder progress toward carbon neutrality and the green energy transition. 

Brian Gu, Xpeng’s co-president, emphasized that while the tariffs do not directly impact Xpeng Motors, they contribute to higher costs and could stifle market openness and competition. Gu commented during the launch of two new E.V. models in Hong Kong.

Xpeng Expansion in Hong Kong and Beyond:

In Hong Kong, Xpeng has partnered with Malaysia’s Sime Darby Motors to introduce its electric sport utility vehicle, the G6, and its flagship seven-seater, the X9. 

This move is part of Xpeng’s strategy to expand beyond the saturated Chinese market, where intense price competition and slowing demand are challenging domestic carmakers. 

Xpeng is not alone in this endeavor; other Chinese E.V. brands like BYD and Great Wall Motor have also increased their presence in Hong Kong. According to consultancy CBRE, the number of Chinese-made EV models sold in Hong Kong has surged from one in 2018 to 20 in 2023, reflecting strong growth in the region.

Global Expansion Amid Regulatory Challenges:

Despite facing regulatory headwinds, including an anti-subsidy probe by the European Union (E.U.) and newly announced U.S. tariffs, Xpeng is forging ahead with its global expansion. 

The company is already active in European markets such as the Netherlands, Norway, and Germany and plans to enter Italy, the U.K., and France. 

Brian Gu acknowledged the need to adapt to changing tariffs and regulatory environments, suggesting that Xpeng might consider shifting production overseas if necessary to mitigate the impact of E.U. tariffs.

Competitive Landscape and Future Plans:

Xpeng continues to innovate and differentiate itself in the competitive Chinese E.V. market. The company plans to launch the Mona-branded EV, which is expected to be the first vehicle in China priced below $21,000 with advanced self-driving capabilities. 

This move aims to capture a broader market segment and compete with established players like Tesla. Meanwhile, Xpeng’s rival Nio has introduced a new lower-priced brand, Onvo, to directly compete with Tesla’s Model Y, indicating the intensifying competition among E.V. makers in China.