Drivers in the UK and EU should not anticipate a steep decline in electric vehicle prices despite growing rivalry from Chinese producers, according to a senior executive at one major Chinese EV maker. Brian Gu, vice chair of Xpeng, indicated that Chinese firms would seek to attract buyers in Europe through product quality instead of engaging in aggressive price cuts seen in their domestic market. Chinese manufacturers have quickly gained dominance in the global EV sector, supported by substantial state aid and reduced production expenses compared with the US, Europe, Japan and South Korea. Intense domestic competition, with 129 rivals operating last year per consultancy AlixPartners, led firms to reduce prices sharply at home. Chinese leader Xi Jinping directed regional authorities last year to limit subsidies to curb resulting damage. Under this pressure, well-resourced Chinese companies including Xpeng have shifted focus to Europe for profitability. Xpeng remains unprofitable while investing heavily in research and European sales expansion, beginning with its electric G6 model priced at £39,990. It recorded 7,300 European sales in the first quarter of 2026, according to analyst Matthias Schmidt. The firm aims to accelerate growth and compete with other Chinese players such as BYD, Chery, Changan, Geely and SAIC. Gu stated he does not foresee a European price war matching China’s intensity. At a London event, he noted that while some rivals are introducing many models to the UK and Europe, they would avoid a rush to lower prices. In contrast, Chinese brands in southeast Asia and emerging markets have emphasized lower costs. European buyers, particularly in developed economies, prioritize quality and distinct features over price, Gu added. Xpeng, often compared to Tesla for its minimalist styling and robot ambitions, is also developing flying taxis. It seeks differentiation through advanced technology, especially autonomous driving systems already offered widely, with plans for robotaxis in Guangzhou. Further driverless features could reach Europe in the first half of next year if the EU implements new UN rules. Gu, a former JP Morgan banker who led Xpeng’s 2020 New York listing, said the company could advance faster than Waymo, Baidu and Wayve by simultaneously developing vehicles, chips and software. Xpeng is assessing options for European production. It currently uses Magna for manufacturing but noted that struggling local automakers with excess capacity have approached it with plant sale proposals. Volkswagen, which partnered with Xpeng in 2023, had offered a German facility, though another executive described it as somewhat outdated.
