Chinese language electrical car maker Xpeng stays dedicated to Europe for the long run regardless of strain it faces from the European Union’s tariffs, based on a high firm official.

“Our plan for Europe is a really long run one,” Brian Gu, Xpeng’s vice chairman and co-president, instructed CNBC’s Charlotte Reed Monday on the Paris Motor Present.

Reflecting on the EU’s choice to adopt higher tariffs on Chinese language EV imports, Gu stated that this has put “a whole lot of strain” on its enterprise mannequin.

Nevertheless, he added that the agency has a “long-term focus” within the continent and is aiming to “discover each attainable solution to handle and make ourselves aggressive.”

Gu stated that Xpeng is at the moment reviewing a number of elements of its enterprise technique — together with product vary, enterprise mannequin and pricing — because it evaluates the affect of EU tariffs.

He did not verify whether or not Xpeng plans to go the prices of tariffs on to its prospects.

“There’s a lot of areas we’re taking a look at, analyzing, [and] making an attempt to optimize,” he stated.

Long term, Gu stated that Xpeng plans to develop into “extra native” in Europe, ramping up its manufacturing capabilities within the area.

“Having native manufacturing capabilities is one thing an organization with a long-term plan and a long-term imaginative and prescient has to do, It is not due to tariffs, it isn’t due to short-term coverage modifications,” Gu instructed CNBC.

Earlier this month the EU voted to adopt definitive tariffs on imports of China-made battery electrical automobiles. The event was a serious blow to the Chinese language EV business, which has been making important inroads into Europe during the last a number of years.

The EU first announced it could slap greater tariffs on Chinese language electrical car imports in June. On the time, the bloc stated that China’s corporations profit “closely from unfair subsidies” and pose a “menace of financial harm” to EV producers in Europe.

Duties have been additionally disclosed for particular person firms, relying on the extent of their cooperation with the probe. Provisional duties have been put in place from early July, however have been revised in September based mostly on “substantiated feedback on the provisional measures” from events.

Tesla, which had voiced considerations on the charge of tariffs proposed for its China-made EVs, noticed its proposed tariff lowered from as a lot as 20.8% to 7.8%.

Final month Chinese language EV maker Nio’s CEO and founder William Li additionally criticized the EU tariffs, saying on a company earnings call that the duties have been “unreasonable” and go in opposition to the “sustainable growth of all humankind.”

The U.S. has additionally expressed considerations over the affect China has on the EV market. In Might, the Biden administration introduced a 100% tariff on Chinese-made electric vehicle imports to the U.S.

Among the many high considerations the Biden administration has expressed about China’s EV business is that it is serving to firms overproduce low-cost clear power automobiles that outpace home demand, successfully distorting the market.

In response to the EU tariffs, the China Chamber of Commerce to the EU has beforehand expressed “deep disappointment” with what it known as the bloc’s “adoption of protectionist commerce measures.”