• Competition inside China has pushed Xpeng to expand to Hong Kong and SouthEast Asia.
  • This Guangzhou-based carmaker’s goal is to make “best-in-class smart electric cars accessible to customers around the world,” according to CEO He Xiaopeng.

OUR TAKE
In China, price wars are hurting the profitability of nearly all EV makers. By introducing the first right-hand drive electric car in Hong Kong and Southeast Asia, Xpeng aims to tap into these markets, leveraging competitive pricing and its strong foothold in China’s electric vehicle sector.
With China’s affordable electric car prices and Xiaopeng’s reputation for innovation, the company is poised to capture significant market share in these regions.
– Jennifer YU

Chinese premium electric vehicle (EV) maker Xpeng plans to launch a mass-market brand in a month, targeting overseas markets.

The new model

Models under this new brand will be fitted with autonomous driving systems and will be priced between US$13,897 and US$20,840, He Xiaopeng, the Guangzhou-based carmaker’s co-founder and CEO, said on Saturday. These EVs will cater to more budget-conscious consumers.“

In the future, cars with the same prices might be developed into the fully-autonomous vehicles,” he added. Xpeng confirmed He’s remarks and said in a statement that the company envisions slashing the development and production costs of autonomous driving technology by 50% this year.

Also read: Smartphone maker Xiaomi to deliver first electric vehicle in China this month

Competition with other firms

As the world’s largest EV builder, BYD delivered 3.02 million pure electric and plug-in hybrid vehicles, most of them priced below US$27,788.

“The segment where EVs are priced from US$13,897 to US$20,840 is dominated by BYD, which has a variety of models targeting budget-conscious consumers,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai.

In February this year, BYD began cutting the prices of nearly all of its models to maintain its leadership position.

Xpeng’s move to occupy a lower price point also comes as China’s government doubles down on efforts to nurture the country’s EV industry.