Chinese car manufacturers on a charm offensive in Europe

Chinese automakers, including prominent names like Xpeng and GAC, emphasized at the Paris Motor Show that their expansion in Europe is not aimed at displacing established European manufacturers with more affordable electric vehicles. In doing so, they seek to allay the concerns of their European competitors, who view the increasingly aggressive international expansion strategy of Chinese providers with skepticism. Brian Gu, Co-President of Xpeng, assured that his ten-year-old company has no intention of overthrowing the traditions of European car brands that have been developed over decades. Instead, they aim to position themselves as providers of "premium electric vehicles" that offer advanced artificial intelligence technologies. Gu also stressed that they do not wish to compete on price, although more compact models with affordable prices could be considered. GAC, a state-owned Chinese company attempting to establish a presence in the region, also expressed reassurance about the economic benefits of its market entry in Europe. The company is interested in collaborating with local partners and meeting the needs of European consumers, according to Feng Xingya, General Manager of GAC. Amid growing political tension over the risks for the European industry, EU member states recently decided on import tariffs of up to 45 percent on Chinese electric vehicles. This measure is intended to curb the advance of Chinese manufacturers, while European producers like Volkswagen and Stellantis are already responding with cautionary notes to the challenges for local plants suffering from overcapacity and declining demand. However, some European automakers are tempering their criticism in order not to jeopardize technological collaborations with Chinese companies. Partnerships are particularly sought in the field of battery technology, where Chinese firms play a key role. Renault CEO Luca De Meo announced that the company, as part of a partnership with China's Envision AESC, intends to expand its electric vehicle production in northern France to be better positioned in the competition with Chinese challengers.