Xpeng, a Chinese electric vehicle startup, is looking for a place to make cars in Europe. The company wants to set up shop there because the European Union plans to charge more for Chinese EVs coming into the continent.

Right now, Xpeng is just starting to look for the right spot. They want somewhere with low labor risks. The company also plans to build a big data center in Europe. This center will help Xpeng collect software data for its smart driving features.

Xpeng's CEO, He Xiaopeng, thinks AI-powered cars are the future. He said:

"Selling a million AI-powered cars per year will be a must for companies that want to win in the next 10 years. By then, drivers might touch the steering wheel less than once a day on their daily commute."

He believes companies, including Xpeng, will start selling these kinds of cars from 2025. Last month, Xpeng also said it plans to launch self-driving taxis in 2026.

Xpeng isn't the only Chinese car maker looking to set up in Europe. BYD, Chery, and Zeekr are doing the same. MG Motor, owned by SAIC, is thinking about shipping cars from its factory in Thailand instead. All these companies want to avoid paying more to sell their cars in Europe.

Source: Bloomberg