China’s Xpeng Aims to Expand With Entry Cars, Europe Production

Xpeng Inc. is looking to expand sales with a mass-market brand, while attempting to avoid higher tariffs in Europe by seeking a manufacturing site in the region.

The carmaker is in the initial stages of selecting a site in the European Union as part of its plan to localize production of its eponymous brand, Chief Executive Officer He Xiaopeng said last Thursday in an interview with Bloomberg at the company’s headquarters in Guangzhou, China.

Xpeng, Volkswagen AG’s Chinese partner, expects to expand in areas with “relatively low labor risks,” He said, adding that the company also plans to set ...