Nio said it maintains the pricing of its current models in European markets at this stage. Xpeng said it is actively assessing the feasibility of establishing local manufacturing capabilities in Europe.
Nio (NYSE: NIO) and Xpeng (NYSE: XPEV) shared their respective responses after the European Union announced that it will impose additional tariffs on imports of battery electric vehicles (BEVs) from China starting July 5.
Nio is closely monitoring the ongoing anti-subsidy investigation and resulting measures taken, a spokesperson told CnEVPost.
At this stage, Nio maintains the pricing of its current models in its European markets, the company said, adding that it cannot be ruled out that prices may be adjusted at a later stage as a result of these tariffs being imposed.
Despite these developments, Nio is fully committed to the European marke and believes in fostering competition and consumer interest, and it hopes to reach a resolution with the EU before definitive measures are enforced in November 2024, it said.
Xpeng, for its part, said that regardless of the fluctuations in tariffs, the company remains committed to enhancing the attractiveness of its products and services through innovation and optimization.
"We are committed to proactively maintaining market competitiveness while minimising any potential impact on our current and future customers," Xpeng told CnEVPost.
Xpeng said all current consumers awaiting delivery and future customers placing orders before the new tariffs take effect will be protected from any price increases due to the announced tariff adjustments. This protection applies irrespective of whether deliveries are completed before or after the tariffs come into effect.
Xpeng believes that product pricing is only one part of competitiveness, which also includes product quality, technological innovation and superior customer experience.
The company believes that with quality, innovation and past track record, it is well positioned to capitalize on the potential of smart EV penetration and offer best-in-class smart EVs to its customers.
"As a global company, we are committed to providing high-quality innovative products to the ever-growing European customer base and making long-term commitments to these markets," Xpeng said.
Xpeng is currently actively evaluating the feasibility of establishing local manufacturing capabilities in Europe and taking appropriate steps to meet market demand, the company said.
Earlier today, the European Commission announced that it will impose provisional countervailing duties on imports of EVs from China from July 5, emphasizing that negotiations with China are continuing.
Different carmakers face different rates, specifically, the separate tariffs applicable to the three Chinese producers are:
BYD: 17.4 percent;
Geely: 19.9 percent;
SAIC: 37.6 percent.
Nio and Xpeng, both of which are among the BEV producers that cooperated in the investigation but were not sampled, are subject to a weighted average tariff of 20.8 percent.
These levies are in addition to the current 10 percent.
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