Xpeng Motors is pursuing the establishment of a manufacturing facility in the European Union to mitigate the impact of newly imposed import tariffs on Chinese electric vehicles (EVs), which can reach up to 36.3%. CEO He Xiaopeng indicated that the company is in the early stages of site selection and plans to build a large-scale data center in Europe to support advanced driving features. This move aligns with similar strategies from other Chinese automakers, including BYD and Chery, who are also localizing production to remain competitive. Despite the tariffs, He stated that Xpeng's global ambitions would not be hindered, although profits in Europe would be affected. Xpeng has reported a 26% year-on-year increase in global vehicle deliveries in the first half of 2024, yet its stock has seen significant declines this year. The company is also collaborating closely with Volkswagen, which has dedicated resources to developing new EVs for the Chinese market.