“We are committed to providing the best products and first-rate customer services that meet the aspiration of Hong Kong consumers,” said James Wu, vice-president of finance and accounting at Xpeng.
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.
“I think as a global company, you always have to face different challenges in different markets,” said Brian Gu, vice-chairman and president of Xpeng, adding that the company was monitoring the development.
“Right now, there’s nothing conclusive, but we are ready to deal with whatever comes our way.”
Last month, Xpeng formed a partnership with Malaysian automotive-to-property conglomerate Sime Darby group to distribute its cars in Hong Kong. Sime Darby Motors, a unit of the Kuala Lumpur-based group, will open a flagship store in Hong Kong to sell Xpeng cars in the third quarter.
“We believe innovation and technology play an important role in determining the future of the automotive industry,” said Raymond Lee, managing director for Greater China at Sime Darby Motors. “Xpeng stands at the forefront of innovation and is renowned for its technology.”
The Hong Kong expansion marks a significant step in Xpeng’s “go-global 2.0 strategy”, under which the company plans to enter markets in Europe, Southeast Asia, Middle East and Africa.
On Thursday, Xpeng said it had started marketing its cars in France through partnerships with local distributors, expanding the brand’s availability to 10 European countries, including Germany, Norway, Denmark, the Netherlands, Spain and Portugal.
It also signed an exclusive partnership with Australian importer, distributor and retailer TrueEV earlier this month, and will display the G6 SUV in showrooms starting in the fourth quarter.
China’s leading EV makers, mired in a prolonged price war and fierce competition at home, are increasingly turning to overseas markets to seek new growth avenues.
The total number of EVs registered in Hong Kong at the end of March stood at about 87,900, representing nearly 10 of the total number of vehicles, according to data from the Environmental Protection Department.
Of the 6,611 EVs sold to individual buyers in the city in the first two months of the year, US carmaker Tesla was the top-ranked brand, accounting for over a third of the market, followed by BYD at 23 per cent.