Key facts
- Xpeng vice-chair Brian Gu believes Chinese EV makers will not start a price war in the UK and EU.
- Gu stated that European customers prioritize quality and differentiation over low cost.
- Xpeng is expanding its presence in Europe with models like the G6.
- The company is investing heavily in R&D for autonomous driving and other high-tech features.
- Xpeng is considering manufacturing vehicles in Europe.
Motorists in the UK and EU should not anticipate a significant decrease in electric vehicle prices, despite the growing competition from Chinese manufacturers, according to Xpeng's vice-chair, Brian Gu. Gu suggested that Chinese carmakers will focus on quality and unique features to attract European consumers, rather than initiating a price war similar to the one seen in China.
Chinese companies have become dominant in the global EV market, benefiting from substantial government subsidies and lower labor costs. The intense competition within China, with 129 manufacturers last year, has led to price reductions in their domestic market. Chinese President Xi Jinping has reportedly urged provincial governments to curb subsidies to mitigate the negative impact on the industry.
Facing domestic pressures, well-funded Chinese manufacturers like Xpeng are looking to Europe for profit opportunities. Xpeng, founded by He Xiaopeng, is currently loss-making due to heavy investment in research and European sales expansion, starting with the G6 model priced at £39,990. The company sold 7,300 cars in Europe in the first three months of 2026, according to analyst Matthias Schmidt. Xpeng aims to increase its sales pace and compete with rivals such as BYD, Chery, Changan, Geely, and SAIC.
Gu stated that while some Chinese rivals are introducing many products to the UK and Europe, a race to lower prices is not expected. He contrasted this with Chinese brands in Southeast Asia or emerging markets, which have focused on being cheaper. "I think the customer in Europe, especially customers in the developed markets, I think the focus is on quality and differentiation more than cost," he said.
Xpeng's minimalist design and ambitions in areas like humanoid robots have drawn comparisons to Tesla. The company is also developing flying taxis and aims to differentiate its vehicles with advanced technology, particularly in autonomous driving. Xpeng plans to roll out robotaxis in Guangzhou and may bring more driverless technology to Europe if new UN standards are adopted.
Gu, a former JP Morgan banker, expressed confidence that Xpeng can rapidly catch up with companies like Waymo, Baidu, and Wayve in robotaxi development, citing the company's integrated approach to developing cars, chips, and software. Xpeng is also evaluating options for European manufacturing, currently working with Austrian contract manufacturer Magna. The company has noted that struggling European automakers have approached them with proposals to sell factories.