The European Union slapped extra provisional duties of up to 38% on the EV imports because of “unfair” state subsidies, despite Beijing’s warnings the move would unleash a trade war.

XPeng, a Chinese EV firm which is known for its designer models, told AFP it would remain in the European market despite the tariffs.

“As a company with a global vision, XPeng will not change its strategy of exploring overseas markets. We will find ways to minimise the impact on consumers,” the company said.

XPeng’s rival Nio, with its own high-end models, said it was “closely monitoring” the EU’s decision.

“At this stage, Nio maintains the pricing of their current models in its European markets. However, it cannot be ruled out that prices may be adjusted at a later stage as a result of these tariffs being imposed,” the company said.

Nio said it remained “fully committed to the European market”.

“We hope to reach a resolution with the EU before definitive measures are enforced in November 2024,” the firm told AFP.

The tariffs will kick in from tomorrow, with definitive duties to take effect in November for a period of five years, pending a vote by the EU’s 27 member states.