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The Guardian World1 min read
EV prices in UK and EU not likely to dive due to Chinese rivalry, says Xpeng boss
TL;DR
UK and EU electric vehicle prices are unlikely to fall sharply despite competition from Chinese manufacturers, according to Xpeng's vice-chair. Instead of a price war, Chinese carmakers will focus on quality to attract customers.
Key points
- UK and EU EV prices unlikely to drop sharply
- Chinese manufacturers focusing on quality over price wars
- Xpeng is still loss-making while expanding in Europe
- Xpeng sold 7,300 cars in Europe in early 2026
Mentioned in this story
XpengBrian GuBYDCheryChanganGeelySAIC
Motorists in the UK and EU should not expect a sharp drop in the cost of electric vehicles despite increased competition among Chinese manufacturers, one of the country’s biggest electric carmakers has said.
Brian Gu, the vice-chair of the manufacturer Xpeng, said that Chinese carmakers could compete on quality to win customers in the EU and UK, rather than unleashing a brutal price war as they have in China.
Chinese carmakers have rapidly risen to dominate the global EV industry, helped by massive government subsidies and lower labour costs than the US, Europe, Japan and Korea.
The huge number of competitors in China – 129 last year according to the consultancy AlixPartners – prompted carmakers to slash prices in their home market. China’s president, Xi Jinping, intervened last year to tell provincial governments to rein back subsidies in an effort to stem the harm. Faced with such pressure at home, the better-funded Chinese manufacturers, including Xpeng, have turned to Europe to try to make profits.
Xpeng, named after its founder, He Xiaopeng, is still loss-making as it spends heavily on research and on expanding sales of its vehicles in Europe, starting with the £39,990 electric G6. It only sold 7,300 cars in Europe in the first three months of 2026, according to the analyst Matthias Schmidt. However, it is hoping to pick up the pace, and compete against other Chinese companies such as the world’s biggest seller of electric cars, BYD, Chery (owner of the Chery, Jaecoo and Omoda brands), Changan, Geely and the MG owner SAIC.
Asked about the possibility of a price war in Europe to match that of China, Gu said: “I don’t see it coming.”
Speaking at an event in London earlier this month, he said that, while some Chinese rivals are “pouring a lot of products” into the UK and Europe, there would not be a race to push down prices. By contrast, Chinese brands in south-east Asia or emerging markets had focused on “just being cheaper”.
Q&A
Why won't electric vehicle prices drop in the UK and EU?
Electric vehicle prices in the UK and EU are not expected to drop sharply due to Chinese manufacturers focusing on quality rather than engaging in a price war.
Who is Brian Gu and what is his role in Xpeng?
Brian Gu is the vice-chair of Xpeng, a major electric vehicle manufacturer, and he has commented on the competitive landscape of EV pricing in Europe.
What challenges do Chinese electric vehicle manufacturers face in Europe?
Chinese electric vehicle manufacturers face challenges such as being loss-making while trying to expand sales and compete against established brands in Europe.
How many cars did Xpeng sell in Europe in early 2026?
Xpeng sold 7,300 cars in Europe during the first three months of 2026.
