EV prices in UK and EU not likely to dive due to Chinese rivalry, says Xpeng boss

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. …