BEV Maker Xpeng to Launch New Model, Expand Charging Network in 2020

Emerging Chinese BEV maker Guangzhou Xiaopeng Motors Technology (or Xpeng) sold 16,608 BEVs in 2019 which is less than half than its annual target of 40,000 units. In addition to the initially set target being too high, sales were negatively affected by the significalt reduction of NEV purchase subsidies in the latter half of 2019. In 2020, in an effort to boost sales, Xpeng plans to expand its product lineup by launching the P7 sports car P7 as well as expand its charging service and sales network. Xpeng’s first mass-manufactured model is the G3 compact SUV. Initially, Xpeng did not have a vehicle production license, so the production of the G3 was subcontracted to Haima Automobile. In March 2020, Xpeng’s subsidiary Zhaoqing Xpeng New Energy Investment purchased Guangdong Foday Automobile. Through the purchase, Xpeng acquired Foday’s production license which is needed for automobile production in China. As a result, Xpeng’s Zhaoqing plant in Guangzhou province, which was completed in the second half of 2019, can begin operation in 2020.

The Zhaoqing plant is scheduled to manufacture Xpeng’s second mass-manufactured model the P7 sports car. Meanwhile, the G3 is expected to be continued to be OEM supplied by Haima Automobile.

In addition to increasing its product lineup, Xpeng is also expanding its charging network. The automaker concluded business partnerships in connection to vehicle charging with charging facility maintenance provider TELD in September 2019 and with emerging NEV manufacturer NIO in December of the same year. TELD will build charging facilities for Xpeng while Xpeng and NIO will share their charging facilities with each other. As of the end of December 2019, through charging business tie-ups with other companies, users of Xpeng models were able to use approximately 200,000 chargers across China.