Chinese electric vehicle (EV) manufacturer $XPeng (XPEV.US)$is reportedly considering overseas production amid an ongoing European investigation into Chinese-made EVs and regulatory adjustments.

The European Commission initiated an investigation in October, questioning whether Chinese-made EVs, bolstered by state subsidies, gain an unfair advantage.

China has criticized the probe as protectionist. Brian Gu, co-president of Volkswagen AG (OTC:VWAGY)-backed XPeng, mentioned during the Beijing auto show that the company currently exports limited quantities of EVs, reported Reuters.

However, evolving regulatory landscapes in the European Union might necessitate a strategic review.

While XPeng eyes a significant uptick in international sales, currently comprising 1%-2% of total sales, this figure could soar to approximately 10% this year, as per the report.

Notably, the company aims to penetrate the U.S. market, albeit challenges hinder definitive entry plans.

Amid scrutiny of Chinese EV exports by Europe and the U.S., XPeng emphasized the importance of supporting the global transition to green technology.

Despite hurdles, the company eyes expansion into European markets such as France, Italy, and the U.K., bolstering its existing presence in the Netherlands, Norway, and Germany.