XPeng‘s founder and CEO He Xiaopeng said the Chinese automaker is prepared to enter the United States and build factories there, contingent on a shift in Washington’s trade stance toward Chinese imports.
“Well, I think that if the US policy allows for companies like us to stay or enter the market and build factories there, definitely we’ll embrace that decision,” He told WardsAuto during the global launch event for the company’s L03 SUV in Munich.
He described XPeng as a technology company that also makes vehicles, and framed North American expansion as essential to the company’s development.
“America will be one of the most important markets that we have to enter because it will help us to grow better as well,” He said.
The comments mark the founder’s most explicit public statement yet on US ambitions.
Chinese-built EVs currently face a cumulative tariff burden exceeding 100% in the United States, effectively barring entry.
Washington imposed a 100% tariff on Chinese EVs in September 2024 under Section 301, on top of an existing 2.5% duty and additional levies under Section 232.
No Chinese automaker currently sells passenger vehicles in the US market.
Canada on the Radar
The founder’s remarks on the US came on the same event where management addressed a potential Canadian market entry, in response to a question from EV.
Alex Tang, XPeng‘s head of international development and service, said that the company has maintained contact with Canadian government officials and local partners, describing Canada’s market as open to Chinese brands.
“The door is open for us,” Tang said.
XPeng‘s engagement with Ottawa has already reached the ministerial level, with Canada’s International Trade Minister Maninder Sidhu meeting XPeng, BYD and GAC executives in Guangzhou in April to discuss market-entry pathways.
Canada reopened its market to Chinese-built EVs in January through a bilateral framework with Beijing, replacing a 100% surtax with the standard 6.1% tariff for up to 49,000 vehicles a year.
Imports under the quota reached 9,235 vehicles by mid-July, or 37.7% of the first-window allocation, with Tesla accounting for the vast majority through shipments of Shanghai-built Model 3 sedans.
Any Canadian entry by XPeng would also now unfold against a more volatile US-Canada trade backdrop.
President Donald Trump announced on Sunday a 50% tariff on a broad range of Canadian goods, with the auto sector explicitly cited in one of three proclamations.
Prime Minister Mark Carney called the duties a CUSMA violation and said Ottawa would push for a comprehensive agreement covering autos.
European Expansion Accelerates
He emphasized localized partnerships as central to XPeng‘s European strategy.
The company is working with Magna International to assemble the G9 and G6 at its plant in Graz, Austria since last September.
XPeng‘s founder told WardsAuto he hopes to finalize a partnership with the Volkswagen Group once negotiations conclude — indirectly confirming earlier reports by local executive Elvis Cheng that the two automakers were working together for manufacturing in the region.
The Chinese company is scouting locations for additional vehicle production sites and research and development centers in Europe, He added, with southern Germany the leading candidate.
“But mainly I think it’s going to be in Germany or maybe southern part of Germany,” he told WardsAuto.
Overseas Strategy
Asked about XPeng‘s approach to building new plants, He said the company favors brownfield sites where facilities can be constructed faster and at lower cost than on greenfield land.
He signaled a willingness to meet European local-content requirements without exceeding them.
“Actually, as long as we are complying with the regulation, then we will be happy, right?” the founder said. “If it’s like 70% requirement as a threshold, then we will do 70%.”
He also pointed to shared production arrangements with European automakers as the most practical path forward.
“They’re not going to build a facility just for us, but they already have their facility and that would be the best partner option,” the Chief Executive told WardsAuto. “As long as it’s compliant with local regulation, we’re looking for partners that can fit our timeline.”
The approach mirrors the template XPeng already uses with Magna in Austria and would allow the company to ramp European production without the capital expenditure of a standalone plant.
XPeng shipped 45,008 vehicles overseas in 2025, nearly double the prior year, and now sells across 65 markets.
The company aims to double that figure this year. As of the end of the first half, exports already accounted for nearly a fifth of its wholesales volume.
