Posted on 28 Aug 2024
Chinese smart EV maker Xpeng is evaluating manufacturing site options in the EU, in a move that would circumvent up to 31.3% import tariffs.
Company’s chief executive He Xiaopeng told Bloomberg that management is looking at areas with “relatively low labour risks,” without elaborating. While acknowledging that the planned countervailing tariffs will reduce profits from European countries, He said the company’s global expansion plan remains unchanged.
In addition to an EV manufacturing plant, Xpeng will also plans to build a large-scale data centre in Europe. That’s because software and data collection is a key part of intelligent EVs, the report says.
During the interview at Xpeng’s headquarters in Guangzhou, China, the ceo explains that the company’s expertise in artificial intelligence and advanced assisted driving features will help it gain market in Europe. He even said that amid smart, autonomous driving, semiconductors will play a more critical role in an EV than battery cells.
Last week, the company posted a narrower net loss for Q2, as revenues increased 60% year-on-year. The carmaker delivered 30,207 EVs last quarter and expects to deliver 41,000-45,000 units in Q3, when it will launch the Mona M03 intelligent BEV jointly developed with Didi.
If Xpeng’s plans materialise, the company will be the latest to announce localised production in Europe following BYD, Chery and Geely, Kallanish Power Materials notes.
Source:Kallanish Power Materials
