The European Union has implemented additional tariffs on electric vehicles from China starting today. Zheng Yeqing, Vice President of Xpeng Motors (09868.HK), told "Hong Kong and Taiwan" that for every Chinese company, tariffs will have an impact on profits, especially since Xpeng Motors' gross margin is not very high, the impact is significant. The group is currently evaluating multiple response plans and is temporarily unable to disclose them publicly.

However, Zheng Yeqing stated that the tariff increase this time is within expectations and will not affect the company's confidence and pace of internationalization. In the first quarter of this year, Xpeng Motors' sales performance in Western markets doubled each quarter. The group currently adopts a mixed model of direct sales and dealers, and when entering the Hong Kong market, it will also rely on local dealer networks.