Xpeng, Volkswagen’s Chinese partneris in the early stages of selecting a site in the European Union as part of its future manufacturing localization plan, Chief Executive Officer He Xiaopeng told Bloomberg in an interview at its headquarters in Guangzhou, China. Xpeng’s broad plan to enter the global marketwill not be affected by higher tariffs, although he noted that in the case of Europe, “some of the profits from European countries will be reduced by the tariff increase.”
As Bloomberg notes, the establishment of a production base in Europe would make Xpeng would join a growing number of Chinese electric vehicle manufacturers, including BYD, Cherry Cars and Zeekr from Zhejiang Geely Holding Group, who want to increase production in the region to minimize the impact of the European Union’s decision to increase tariffs on electric vehicles made in China. Xpeng to face additional duty of 21.3%
Additional European tariffs are just one aspect of a broader global trade dispute. The United States has imposed tariffs on Chinese imports of electric vehicles that could exceed 100 percent, as the world’s two largest economies fight for an industry that is growing rapidly thanks in part to subsidies from Beijing. Now, Canada has joined this group, imposing an additional 100% tariff on Chinese EVs.
Xpeng with basic driver assistance system for less than $20,000
As reported by CNBC, the Chinese company producing electric cars Xpeng on Tuesday announced that its mass-market Mona brand will begin selling some models for less than $17,000. PThe basic version of the Mona M03 electric coupe will cost 119,800 yuan ($16,812)and its range will be 515 kilometers and will be equipped with several parking assistance functions. The Mona M03 version with more advanced “Max” driver assistance functions and a range of 580 kilometers will be sold for 155,800 yuan.
By comparison, Tesla’s cheapest car, the Model 3, costs 231,900 yuan in China after a price cut in April, almost twice as much. Pre-sales for the Mona M03 began on August 8.
Xpeng also believes its expertise in artificial intelligence and advanced driving assistance features helps it expand into European markets, which is one reason it will need to set up a large data center there before it can introduce those features in the region, He said.
Xpeng’s driver assistance technology is widely regarded as some of the best currently available in China. Tesla’s version, advertised as “fully autonomous”, is not fully available in the Middle Kingdom.
Cooperation with Volkswagen
In July 2023 Volkswagen announces $700 million investment in Xpeng to jointly develop two electric cars to be delivered in China in 2026. The vehicles will be based on Xpeng’s G9 platform, a mid-size electric crossover SUV. The new cars will likely have longer range, charging, much smarter driving, more luxury technology, for the same price, potentially.”
