Chinese auto giant XPENG expands European footprint with German market launch

One of China's biggest automakers has announced its official entry into Germany.  

Guangzhou-based XPENG enters Europe's biggest auto-market with two models - the battery electric G9 SUV and P7 sports sedan. Both models are already available in Norway, Denmark, Sweden, and the Netherlands.

"The launch in Germany is a milestone moment for XPENG and we are delighted to be able to take our place in one of the most competitive automotive markets in the world," said Markus Schrick, Managing Director for XPENG Germany. 

"We are excited to invite our new customers to test and experience the G9 and P7 models and see the quality of our vehicles for themselves," he added. 

The G9 starts at €57,600 ($62,126 USD) and the P7 starts at €49,600 ($53,497 USD). 

XPeng is the latest in a long line of Chinese EV makers who have chosen to expand to Germany, with NIO, BYD and GWM all already operating inside the EU's biggest economy. 

Speaking to CGTN at the company's official launch in Frankfurt, XPENG President Brian Gu said the firm's arrival in Germany was the culmination of years of work. 

"It's a big moment. As a company aiming to be one of the future leaders in mobility, the German market is a must win market for us. We recognize Europe is the largest market outside of China for smart EVs and within Europe, no country is as important as Germany," he said.

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XPENG's German expansion comes off the back of new analysis from the European Transport and Environment (T&E) thinktank which revealed that almost a fifth (19.5 percent) of electric vehicles sold in Europe last year were made in China, with the number on track to reach a quarter (25 percent) in 2024. 

The forecast comes as the EU considers implementing import tariffs to counter what some lawmakers view as unfair local subsidies for Chinese EVs which they believe is undercutting European rivals. 

"Tariffs will force carmakers to localize EV production in Europe, and that's a good thing because we want these jobs and skills. But tariffs won't shield legacy carmakers for long. Chinese companies will build factories in Europe and when that happens our car industry needs to be ready," said Julia Poliscanova, senior director for vehicles and emobility supply chains at T&E.

Unlike other Chinese manufacturers, XPENG operates through an established network of dealers for its sales strategy. When its local sales start in May, XPENG says it will be represented at 24 retail locations across Germany, with plans to grow to 120 retail locations by the end of 2026.

It's not the only firm to implement ambitious targets. Xi'an-based BYD says it is targeting 5 percent of the European electric car market by 2025.

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