Chinese electric vehicle maker Xpeng Inc. is looking to ramp up its global expansion, including investing in manufacturing plants and infrastructure, with a focus on large markets such as Europe.

The brand, which already has a presence in 30 countries, is currently focused on markets including Southeast Asia and the Middle East. Xpeng plans to start local production in Indonesia in the second half of this year and is setting up a research and development center in Germany, Vice Chairman and Co-President Brian Gu said in an interview with Bloomberg TV.

The company is “closely monitoring” opportunities in Europe and Latin America, particularly Brazil and Mexico, which will require local investments, he said. 

Xpeng and its peers are increasingly looking to establish a manufacturing footprint in overseas markets as headwinds, including punitive tariffs in Europe, hurt the outlook for exports of made-in-China cars. But escalating trade frictions between longtime trade partners, particularly the US and its North American neighbors, is creating uncertainty about Chinese firms’ investment plans abroad. 

At home, Xpeng continues to develop smart-driving features, which have emerged as the latest front line in the cutthroat Chinese market. Tesla Inc. has deployed driver-assistance capabilities similar to those marketed as Full Self-Driving in the US, while BYD Co. announced a system dubbed God’s Eye.

“All of our competitors suddenly realize the importance of smart driving to provide competitive vehicles in China,” Gu said. The emergence of large language artificial intelligence models and big data means Xpeng’s systems can cut costs by reducing the hardware needed in earlier versions, such as lidars, he said.

The US-listed company last week reported a full-year loss of 5.79 billion yuan ($797 million) for 2024. It forecasts sales of between 91,000 and 93,000 cars for the first quarter of this year, after delivering a record 91,507 vehicles in the final three months of 2024.