Despite pressure from tariffs, Xpeng president reaffirms the company's commitment to Europe.

• Xpeng President Brian Gu stated that the EU's decision to impose higher tariffs on Chinese EV imports has put "a lot of pressure" on the company's business model.
• The company has a "long-term focus" in the continent and is striving to "find every possible way to address and make ourselves competitive," he said to CNBC.
• The EU recently passed final tariffs on Chinese-made battery electric vehicles, dealing a significant blow to the Chinese EV industry.

Despite facing pressure from the European Union's tariffs, a top company official stated that the Chinese electric vehicle maker remains committed to Europe for the long term.

At the Paris Motor Show, Brian Gu, Xpeng's vice chairman and co-president, stated that our plan for Europe is a long-term one.

The EU's decision to impose higher tariffs on Chinese EV imports has put "a lot of pressure" on Gu's business model.

He stated that the company has a "long-term focus" in the continent and is striving to "find every possible way to address and make ourselves competitive."

Xpeng is currently reviewing its business strategy, including product range, business model, and pricing, in response to the impact of EU tariffs, as Gu stated.

It is unclear whether Xpeng intends to pass on the costs of tariffs to its customers.

He stated that they are examining and trying to optimize several areas.

In the long run, Gu stated that Xpeng intends to increase its local presence in Europe by enhancing its manufacturing capabilities in the region.

According to Gu, a company with a long-term plan and vision must have local manufacturing capabilities, not because of tariffs or short-term policy changes.

The EU's decision to impose definitive tariffs on Chinese-made battery electric vehicles has dealt a major blow to the Chinese EV industry, which has been gaining ground in Europe for several years.

In June, the EU declared that it would impose higher tariffs on Chinese electric vehicle imports, citing that Chinese companies receive "unfair subsidies" and pose a "threat of economic injury" to European EV manufacturers.

The probe disclosed duties for individual companies based on their level of cooperation. Provisional duties were initially implemented in July, but were later revised in September following feedback from interested parties.

The tariff on China-made EVs proposed by which had voiced concerns was lowered from 20.8% to 7.8%.

More costs for the industry

Stella Li, executive vice president of Warren Buffett-backed EV firm BYD, stated on Monday that the EU's planned tariffs on Chinese-made EVs were based on incorrect calculations and were therefore unfair.

The auto industry is being confused and additional costs are being added to auto manufacturing due to politicians' involvement with tariffs, as stated by a commentator at the Paris Motor Show, according to Reuters.

Nio's CEO and founder William Li criticized EU tariffs on a company earnings call, stating that the duties were "unreasonable" and contradict the "sustainable development of all humankind."

The Biden administration imposed a 100% tariff on Chinese-made electric vehicle imports to the U.S. in May, as the U.S. expressed concerns about China's influence on the EV market.

The Biden administration has raised concerns that China's EV industry is producing more clean energy vehicles than domestic demand, which is distorting the market.

The China Chamber of Commerce to the EU has previously expressed "deep disappointment" with the EU's "protectionist trade measures" in response to the EU tariffs.