Drivers in the European Union should not expect competition among Chinese manufacturers to push down the cost of electric vehicles (EVs), according to one of China’s largest electric carmakers.
A recent price war within China has reduced the domestic price of EVs, but XPeng vice-chair Brian Gu predicts that European consumers will behave differently. Gu faces an estimated 129 competitors at home, slashing both prices and state subsidies to industry, but he expects the EU market to focus on quality over price.
Estimates suggest XPeng sold a mere 7,300 cars in Europe in Q1 of first three months of 2026, way behind bigger sellers such as BYD, Chery, and Changan. However, Gu argues that his electric G6 (starting price €46,245) and its successors will appeal to Europeans on account of their advanced technological features:
I think the customer in Europe, especially customers in the developed markets, I think the focus is on quality and differentiation more than cost.
XPeng previously rejected attempts by partner Volkswagen to sell it an aged car plant in Germany, adding to the sense that Berlin is presiding over a car industry in crisis. While the EU has used tariffs to penalise Chinese manufacturers over their ‘unfair’ receipt of government subsidies, Brussels has also promoted consumer subsidies to assist the purchase of EVs and thereby attempt to hit “net zero” targets.
