Chinese electric vehicle (EV) maker XPeng has acknowledged that the European Union's (EU) tariffs on EVs manufactured in China have had a significant economic impact, but the company remains committed to expanding its presence in European markets. The EU imposed tariffs of up to 35.3 percent in October, citing alleged subsidies that give Chinese EVs an unfair advantage.

Speaking at the opening of an XPeng store in Hong Kong, vice chairman and president Brian Gu stated that the tariffs are "something we have to deal with... it's a large economic impact." However, he emphasized that the tariffs would not deter XPeng from pursuing opportunities in Europe, which he described as a "very important market." Gu suggested that localization would be key to mitigating the impact of tariffs and protectionist measures.

XPeng announced plans last month to double its global presence to 60 countries and regions, aligning with a broader trend of Chinese EV manufacturers seeking growth through exports. These companies, backed by substantial support from Beijing, are looking to gain a competitive edge through innovation and global expansion.

In addition to European expansion, XPeng is focusing on advancements in self-driving technology. Gu noted the rapid progress in this area, driven by more powerful chips and artificial intelligence. He predicted that Level 4 autonomous vehicles, which require minimal human intervention, could enter mass production as early as next year.

Meanwhile, the United States has maintained a 100 percent tariff on Chinese-made EVs and has implemented rules to restrict Chinese technology in its cars. XPeng entered the Hong Kong market in April 2024 and faces strong competition from both Chinese rivals and established automakers like Tesla. In 2023, XPeng registered fewer than 500 vehicles in Hong Kong, trailing behind other Chinese brands such as SAIC's Maxus and Geely's Zeekr. At the Hong Kong store opening, XPeng announced plans to introduce its luxury seven-seater X9 model to the market.