Chinese EV maker Xiaopeng accelerates European expansion with first overseas store in Stockholm

Xiaopeng P5 Electric Car
[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Chinese electric vehicle companies are accelerating their efforts to penetrate the European market.

CNBC reported on the 10th (local time) that Xiaopeng plans to open its first overseas store this week in Stockholm, the capital of Sweden.

Xiaopeng, which has only entered Norway so far, has declared an expansion of its European market strategy. Xiaopeng has been selling cars in Norway since the end of 2020 but has not yet operated its own stores.

Xiaopeng plans to actively target the European market by directly operating its first overseas store. Xiaopeng’s CEO, He Xiaopeng, stated in a press release, "Xiaopeng begins its journey to the world from Europe."

To target the Swedish market, Xiaopeng has signed an agreement with the local major car brokerage company, Bilia.

Xiaopeng also announced plans to open its own store near The Hague, the capital of the Netherlands, in March. Additionally, it has signed an agreement with Emil Frey, a Dutch car sales company.

CNBC described Xiaopeng’s overseas market plans announced so far as the most ambitious.

Brian Gu, Chairman and Vice President of Xiaopeng, said in an interview at the end of last year that they would expand the European market in 2022. At that time, Gu emphasized that they would increase overseas sales to half of total sales to become a global company.

Chinese electric vehicle companies are accelerating their efforts not only in the rapidly growing domestic market but also in the European market to secure future growth engines.

NIO opened a store in Oslo, the capital of Norway, in September last year and started local car sales. BYD also began exporting electric vehicles to Norway since last summer.

Norway, Sweden, and the Netherlands, where Chinese electric vehicle companies are focusing their efforts, are countries with the highest electric vehicle sales ratios in the world. According to the electric vehicle market research firm EV-Volumes, the proportion of electric vehicles sold among passenger cars in Norway last year was 86.1%, the highest in the world. Sweden and the Netherlands followed with 45% and 29%, respectively.

This content was produced with the assistance of AI translation services.