British drivers’ enthusiasm for electric cars, and the absence of tariffs imposed elsewhere in Europe, represents “a big opportunity” for Chinese manufacturers, the president of the newest entrant to the UK electric vehicle (EV) market has told Sky News.
Dr Brian Gu of XPENG Motors said the combination of a large pool of potential customers open to new technologies, and tariff-free access made the UK attractive as the company seeks to expand in Europe.
XPENG is just 10 years old and has been producing cars for just seven, with its first model available in Britain from this month, the G6, a “premium medium-sized SUV coupe” that, in looks and specification, appears a direct competitor to Tesla‘s Model Y.
Retailing at a starting price of just under £40,000 however it is around £7,000 cheaper, which it hopes will give it an advantage in the premium class it is targeting.
It is the latest example of a Chinese EV manufacturer seeing an opportunity in the UK, which has imposed electric vehicle targets ahead of a phase-out of new petrol and diesel models by 2030 while sitting outside the EU trading bloc.
EVs made up just over 19% of new car registrations in the UK last year, a growing market share but still short of a government target for domestic manufacturers of 22% that rises to 28% this year.
The UK industry body has warned consumer demand is slowing and called for state-funded consumer incentives, but speaking at XPENG’s UK launch, Dr Gu dismissed those concerns and said the UK was of “strategic importance” as the brand expands.
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“We see a very, very big opportunity because we see the market is growing very healthily compared to the rest of Europe, and I think you can see continued growth,” he said.
“And we actually see UK customers embracing new technologies. For example, Tesla is very successful here, so we want to also bring the latest and most innovative technologies from China in our vehicles.”
Success despite tariffs
XPENG sold more than 10,000 cars in 14 European territories last year despite the EU imposing tariffs of up to 35% on Chinese-made EVs, including Tesla, in response to Beijing’s generous subsidiaries to the industry.
The absence of tariffs in the UK has raised concerns that manufacturers including BYD, Geely and SAIC, which owns the MG brand, will flood Britain with cheap EVs, undermining UK-based manufacturers.
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Dr Gu denied “dumping”, and called for the EU to drop its tariffs.
“Having no tariffs allows the UK market to receive the best products from around the world. And we are certainly not focused on quantity, we focus on quality,” he said.
“We always advocate for less friction and barriers for trade, so for us, if there are improvements on that front, we welcome that. But we also are fully prepared to compete in whatever conditions we face because we think it’s a long-term strategy for a young company to establish a global brand here.”
Security risks denied
Dr Gu also rejected concerns, held in Whitehall and security circles, of the potential security risk posed by widespread adoption of Chinese-owned technology.
Communications company Huawei was forced out of UK networks because of Beijing’s power to demand data from its companies.
The likely proliferation of Chinese vehicles storing British drivers’ data raises another question.
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“As a company currently operating in 30-plus countries, we adhere to the most stringent data and privacy rules in every market that we enter,” Dr Gu said. “We put privacy and data security as the utmost focus for our business, so we will do whatever it takes.”
Asked directly if he could resist a demand for data, he said: “Well, right now, I don’t think that there is any demand for that. But I think as a company we will do whatever it takes to protect our customers.”
