Chinese EV makers Nio and Xpeng to maintain EU prices

Chinese carmakers Xpeng and Nio announced this Friday that they will maintain prices for electric vehicles on the European market despite tariffs temporarily imposed by the EU from this week.

Xpeng, which has recently expanded its presence in the European market, said European consumers who have already ordered or are awaiting delivery of vehicles “will not be affected by the price increase.”

The company has announced its commitment to the European market and its intention to achieve a 3% market share of electric vehicles in Germany by the end of the year, reports the financial portal Sina Finance.

Xpeng also plans to enter the UK and Italian markets.

Nio, quoted by trade publication Auto Home, said it would “maintain current prices” for its products in Europe and “continue to provide quality services to users” on the continent.

The Shanghai-based company, considered one of Tesla’s biggest rivals in the Asian country, is confident that “adequate competition in the market will benefit consumers” and hopes to “reach a solution with the EU” before the final introduction of tariffs in November 2024.

The fees, which will be added to the 10% already charged, will average 21%, lower than experts expected.

BYD and Geely will be taxed at slightly lower rates of 17.4% and 20% respectively after cooperating in the investigation, while SAIC will be taxed at the maximum rate (38.1%) for failing to cooperate in the investigation.

Four months before punitive tariffs are set to take effect, Beijing is stepping up trade pressure.

In recent weeks, Chinese authorities have hit back, investigating European pork and imposing extra tariffs on large vehicles, as well as “anti-dumping” investigations (selling prices below cost) on dairy products from the public quarter.