Xpeng Plans Hybrid Version for Europe to Avoid EU Tariff Hike

Facing the EU's proposed an additional 21% tariff on imported battery-electric vehicles, Xpeng Automobile is considering launching full-hybrid models in the European market to recalibrate its global expansion strategy.

Jacky Gu, Xpeng Automobile's Head of Technology, told Automotive News Europe at a media event in Munich on July 15: "We're listening closely to customer feedback and are currently evaluating whether to offer full-hybrid models outside China." He stressed that Xpeng remains committed to battery-electric technology as its long-term direction — but short-term strategies must align with regional policies and market demand.

Notably, Xpeng has yet to launch any full-hybrid model globally. Its range-extended electric vehicles already in production in China all use a 1.5-liter four-cylinder engine; Gu indicated that, if a European hybrid variant materializes, it would likely adopt the same powertrain family.

This move follows the EU's planned anti-subsidy tariffs — effective from 2026 — on battery-electric and range-extended electric vehicles originating from China, adding 21 percentage points atop the existing 10% Most-Favored-Nation tariff. Full-hybrid and plug-in hybrid vehicles, however, are explicitly exempted. According to market research firm Dataforce, full-hybrid and plug-in hybrid models accounted for 53% of Chinese-brand sales in Europe in June this year — up sharply from 36% year-on-year — while BEV share fell from 38% to 35%.

Though still trailing industry leaders such as GEELY (including Volvo), MG, Chery, BYD, and Leapmotor, Xpeng is expanding rapidly in Europe: It sold 18,903 units in the first half of 2026 — a 126% year-on-year surge. The G6 midsize SUV led with 12,924 units; the G9 full-size SUV followed with 5,374; and the newly launched P7+ fastback delivered just 379 units — all currently assembled via CKD kits at Magna Steyr's plant in Austria, exclusively in battery-electric configurations.

As an early mover, MG Motor has already established a hybrid product portfolio in Europe: Its ZS HEV SUV sold 10,011 units in H1, ranking third among European hybrid models; MG3 HEV also placed in the top ten with 6,320 units. Great Wall Motors (HAVAL Jolion), Dongfeng, and GAC (Ora 5) are likewise accelerating their hybrid rollouts across Europe.