China's Xpeng wants to produce electric cars in Europe

Aiming to avoid new European import duties, Asian start-up seeks suitable location for factory

The Xpeng logo on the G6

By: Riccardo Ciriaco

Published by: Brian Potter

Aug 28, 2024 at 3:15am ET

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The Chinese company Xpeng is looking for a home in Europe. Objectives: to build an electric car factory and bypass the new import duties imposed by Brussels, amounting - in the case of the Chinese start-up - to 31.3%; a quota that comes from the sum of the previous 10% tax and the new 21.3%.

Revealing the brand's strategy is CEO He Xiaopeng, who makes the announcement during an interview with the American news agency Bloomberg. The brand is therefore on the hunt for a suitable location.

Even a data centre

We are still in the early stages of the search, but the brand's number 1 specifies that the future production area will have to guarantee 'relatively low labour risks', although the meaning of this statement is not clear. It is also not known which models will see the light of day in the Old Continent.

Xpeng G6 (2024) nel test

Xpeng G6

In addition to the plant, a large-scale data centre is also planned, which is essential for collecting, storing and managing the data of autonomous driving electric vehicles. Xpeng will thus add its name to the list of Chinese manufacturers with (forced) 'made in the EU' ambitions, such as BYD, Chery and Zeekr .

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What's happening

Meanwhile, Canada has also decided to impose duties on imports of electric cars born in the shadow of the Great Wall. 'China is not following the same rules,' claims Prime Minister Justin Trudeau, who adds: 'We are moving in parallel with other economies around the world.

Canadian taxes will be 100 per cent, like those of the neighbouring United States, which is in the process of finalising the details of its crackdown on Beijing. The European Union, on the other hand, has opted for a maximum tax rate of 36.3%, already in force and now awaiting final approval by the end of October.

Xpeng is not the only one:

Tariff effect: Zeekr wants to produce electric cars in Europe

BYD plans factory in Turkey to avoid paying duties on electric cars

Can Chery and MG move production to Turkey?

European MG plant in Spain, Hungary or the Czech Republic?

Source: Automotive News Europe

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