China Electric Vehicle Company Xpeng told CNBC on Friday that its newly launched X9 model could be a “game changer” for the industry.
Xpeng Motors launches X9 A large 7-seater EV launched on January 1, a car based on the SEPA2.0 architecture and built for the Chinese market. The X9 series is priced between 359,800 yuan and 419,800 yuan (approximately $50,360 to $58,760) and can be shipped immediately.
Brian Gu, vice chairman and co-president of Xpeng Motors, said in an exclusive interview with CNBC’s Emily Tan: “For the X9, we actually expect this to be a game changer in the MPV (multi-purpose vehicle) pure electric vehicle field. .”
“We believe this is probably the best-selling product in its class… because I think it has some very innovative technology and design and great handling, industry-leading smart driving technology – all rolled into a very beautifully designed product. “In the middle,” Gu said.
As Xpeng Motors launches new products, many domestic electric vehicle manufacturers such as Nioh, Huawei and Zeekr recently released new electric vehicles. Even Chinese consumer electronics company Xiaomi has launched its first electric car to compete in the market.
We expect that by 2024, we will grow much faster than the industry, which means we can expand our market share.
Brian Gu
Vice Chairman and Co-President of Xpeng Motors
Xpeng Motors has ambitious plans to launch driver assistance technology in China at the end of last year and in Europe at the end of 2024.
The Chinese electric car maker also Sign a cooperation framework agreement On January 2, Xpeng Motors signed a flying car manufacturing, development and sales agreement with Guangdong Huitian. Xpeng Motors will provide research and development, technical consulting services and sales agency services to Guangdong Huitian.
“We expect that by 2024, we will grow much faster than the industry growth, which means we can expand our market share,” Gu said, adding that the company will seek to leverage greater scale and better product mix to increase profit margins.
“The X9 will be a very high-margin product for us,” Gu said.
Fierce competition
Competition in China’s electric vehicle market is increasingly fierce BYD, ideal car and auspicious Be one of the few players to hit annual sales targets.
Both Xpeng Motors and NIO fell short of their targets.
Xpeng Motors has delivered a total of 141,601 vehicles In 2023, it will grow by 17% from a year ago.That falls short of the company’s target of delivering 200,000 vehicles this year local media.
Morningstar analyst Vincent Sun said in a report: “We believe investors’ focus (in 2024) will be whether the company can maintain good delivery momentum through new product launches and improve in a challenging pricing environment. Profitability.” November 16 notes On Xpeng Motors.
2024 is going to be a very competitive year, with obviously a lot of new models and brands coming to the segment.
Brian Gu
Vice Chairman and Co-President of Xpeng Motors
NIO will deliver 160,038 cars in 2023up 30.7% from a year ago but still well below its target of about 245,000 vehicles, which was based on a “doubling of sales” in 2022 that management set on its fourth-quarter earnings call The goal.
Li Auto delivered 376,030 units 2023 – Annual delivery milestone of 300,000 vehicles achieved.
In terms of sales, BYD achieved its 2023 target of 3 million vehicles and surpassed Tesla to become the world’s best-selling electric vehicle brand in the fourth quarter, with its electric vehicle sales exceeding its U.S. competitors.
BYD production Production in 2023 will be 3.05 million vehicles, while Tesla said it would produce 1.84 million vehicles in the same year.
‘Strong momentum’
Despite the challenges, Mr. Gu is optimistic about China’s electric vehicle market in 2024, saying “2024 will be a very competitive year” with new models and brands being launched.
“I think if you look at the penetration rate of close to 40% by the end of 2023, which is the highest point we’ve seen in the industry, the fourth quarter of China’s electric vehicle industry ended very high,” Gu said. “So all of this points to strong momentum.”
according to TrendForceIn November, the penetration rate of new energy vehicles in China exceeded 40% for the first time, and “optimistic growth” is expected in 2024.
“I think we will continue to see many catalysts driving the growth of the new energy vehicle market, especially technology, product launches, and the continued shift from internal combustion engines to new energy vehicles,” Gu said. .
The new energy category includes electric and plug-in hybrid power sources.
“But in order to remain competitive, I think we still need to focus on differentiated innovative technologies and maintain a very strong cost competitiveness through scale and technological innovation,” he added.
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