XPENG Maintains U.S. R&D Operations Despite Tariffs Preventing Car Sales
Chinese EV manufacturer XPENG is preparing for the global rollout of its VLA 2.0 autonomous driving system next year, though the technology will not be available in the U.S. due to high tariffs. Despite this, XPENG maintains an R&D center in Silicon Valley, California, to understand global driving habits and regulations. Dr. Xianming Liu, head of XPENG's General Intelligence Center, stated that local R&D presence, including in Munich, Germany, allows the company to tailor its technology to diverse international markets. The company leverages talent and innovation from these regions, alongside its R&D efforts in China, to advance its driverless car development.
XPENG is set to globally launch its VLA 2.0 autonomous driving system next year, marking a significant advancement in the company's development of driverless cars. However, this technology will not be introduced in the U.S. market, which remains inaccessible to Chinese automakers due to high tariffs.
Despite the lack of direct market presence, XPENG continues to operate an R&D center in Silicon Valley, California, and develops its technology with U.S. drivers in mind. Dr. Xianming Liu, head of XPENG's General Intelligence Center, explained that the U.S. R&D facility is crucial for understanding regulations, traffic rules, customer needs, and driving habits across various regions, even without active testing in the country.
In addition to its U.S. presence, XPENG has established an R&D center in Munich, Germany. According to Liu, each R&D location offers distinct advantages. Silicon Valley provides access to talent and innovation, while Germany is known for manufacturing expertise and a strong automotive industry. This multi-regional approach aims to combine diverse expertise and resources.
The company also benefits from its R&D operations in China's Greater Bay Area, including Guangzhou, where XPENG is headquartered. Liu noted the abundance of talent and the rapid application of AI systems in China, where the acceptance of autonomous driving concepts by consumers allows for quick product iteration.
The global automotive landscape is shifting towards New Energy Vehicles (NEVs). In China, over half of all new cars sold are NEVs, with this figure rising above 60 percent in April. Globally, electric car sales increased by over 25 percent in 2024. Norway saw almost all new car sales in 2025 being EVs, and regions like Latin America and Africa experienced a doubling of EV adoption. In contrast, U.S. EV uptake has slowed, though it still accounts for approximately 10 percent of new car sales.
Liu emphasized that the new energy revolution is a global phenomenon, benefiting both the economy and the environment. He also highlighted that NEVs are inherently more suitable for intelligent car systems and smart driving due to a shorter control chain compared to traditional internal combustion engine vehicles.
(Source: Mashable Tech)
