Chinese EV maker Xpeng launches SUVs in France as European expansion gains pace

Posted by Admin May 16, 2024 Bussiness

“We are proud to highlight Xpeng’s power of technological innovation, through which we are paving the way for a new era in smart mobility, which we hope will be inclusive and accessible,” said Qiang Shunqiang, general manager for Xpeng France, in the statement.

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Entrenched in a brutal price war at home, Chinese EV leaders like Xpeng, Nio, Li Auto, and BYD are increasingly turning their attention overseas to counter slowing domestic demand.

However, they face big hurdles in their global expansion plans. On Tuesday, the Biden administration said it would raise tariffs on EVs to 100 per cent, as part of levies on US$18 billion of Chinese goods to protect US producers. An investigation launched by the EU last year into Beijing’s subsidies for carmakers could result in similar duties and derail plans.

Xpeng said it will introduce more models in France, while focusing more on the SUV market that caters to local consumer preferences, but did not disclose further details on the expected sales volumes, launch or prices.

The company’s expansion into France comes after Spain and Portugal last month. The company sold 383 and 584 cars in Norway and Denmark in the first four months this year, almost entirely G9s, making it the bestselling SUV model in the pure-battery EV category in the two countries, according to EU-EVs, a website tracking EV sales in the EU.

The G9 was launched in China in September 2022 from 309,900 yuan (US$43,000), followed by the G6 in June 2023 at a starting price of 209,900 yuan. Since the price war broke out in China earlier this year, the starting prices of the G9 and G6 have fallen to 263,900 yuan and 179,900 yuan, respectively.

In Germany, the G9 is available from €57,600 (US$62,700) to €70,000.

Xpeng is also tapping the right-hand drive market in regions like Hong Kong, Australia and Southeast Asia. It signed a partnership with Australian car distributor TrueEV this month, just weeks after saying it plans to sell the G6 and G9 models in Hong Kong in the third quarter.

Touting its smart driving technologies, Xpeng is also considering rolling out its autonomous driving systems to more international markets.

In a video posted on LinkedIn last month, He Xiaopeng, Xpeng’s chairman and CEO, said the company had finished testing its technology in Germany, noting that it was “nearly road-ready” for Europe.

Separately, Shenzhen-headquartered BYD, China’s largest EV maker, is looking to set up a factory in Mexico, Stella Li, BYD’s Americas CEO, said on Wednesday. BYD also unveiled the Shark mid-size hybrid-electric pickup in Mexico to strengthen its market presence.