Xpeng CEO He Xiaopeng told Bloomberg that the company is in the early stages of selecting a production site within the EU and also has plans to set up a large data center in Europe. It's unclear where exactly the company plans to set up its factories, but He Xiaopeng said the company is looking at areas with “relatively low labor risks.”
One of the main initiatives will be in data centers, as “efficient software collection will be paramount for intelligent driving features in cars,” and Bloomberg reports that “Xpeng believes its expertise in artificial intelligence and advanced driver assistance features will help it expand into Europe.”
“Selling 1 million AI-enabled cars per year will be a prerequisite for the eventual winners in the next decade. During that decade, human drivers may touch the wheel less than once a day on average during their commute,” He said. “From 2025, companies will begin to roll out such products, and Xpeng will be one of them.” Last month, Xpeng announced plans to launch self-driving taxis in 2026.
Avoiding EU import tariffs
Xpeng is not the first Chinese automaker to set up production in Europe. BYD, Chery and Zeekr all have factories on the continent and hope to minimize the impact of higher import tariffs on Chinese manufacturers. Others, such as SAIC-owned MG Motor, are exploring different loopholes – in MG's case, it exports vehicles from a factory in Thailand, which would impose different tariffs.
The ongoing production deal with Volkswagen is also likely to help with European production, as the two companies have expanded their technology cooperation agreement to E/E architecture, allowing both companies to use the same suppliers. In fact, the two companies are now making a big effort to have their engineers learn from each other. In an interview with CNBC, Xpeng co-president Brian Gu said that hundreds of Volkswagen staff are spending time at Xpeng as the two companies work on developing electric vehicles for the Chinese market. Volkswagen did not comment on the interview, but Gu said that German engineers are spending a lot of time at the startup's offices.
bloomberg.ca, cnbc.com
