Leading Chinese EV automaker XPeng Motors has publicly shared plans for a new EV brand to deliver affordable, AI-driven smart cars to young consumers. Targeting China’s A-class segment of EVs priced between RMB 100,000-150,000, XPeng’s new brand could help pave the way for more affordable EVs around the globe.
XPeng Motors ($XPEV), although still relatively young in the automotive industry, sits as a veteran in Chinese EV development and the adjacent technologies that support electric mobility.
In addition to designing, developing, and manufacturing its own EV hardware and top-tier ADAS software, the XPeng umbrella also develops charging technology, robots, and even has its own advanced air mobility (AAM) arm called AeroHT – which is developing eVTOLs and actual flying cars.
Such investments are starting to pay off as well. XPeng Motors recently posted its Q4 2023 sales numbers which included record revenues, significantly lower net losses, and an upward tick of gross margins into positive territory.
With expansions to new markets like Europe, Egypt, and the Middle East continuing in 2024, XPeng Motors has announced a new EV brand that will initially launch in China, and its targeted pricing is hard not to get excited about.
New XPeng brand to provide “AI-driven user experience”
XPeng Motors shared details of the new EV brand earlier today, which arrives as a culmination of previously laid plans for new vehicle technologies. During its annual 1023 Tech Day 2023, XPeng expressed a commitment to deploy more AI in its mass-produced EVs, including cognitive assistant functions.
During the recent China Electric Vehicle 100 Summit, XPeng Chairman and CEO He Xiaopeng shared big plans for the automaker’s “AI-enabled smart driving” technology, vowing to invest RMB 3.5 billion (~$492M) in 2024 alone toward the R&D of artificial intelligence and the firing of 4,000 new employees.
Today we’ve learned XPeng’s AI and ADAS technology won’t just be featured on its namesake EVs but in a new, more affordable brand as well. The unnamed sub-brand will launch in China soon, although XPeng says it will “create a new breed of AI-powered Smart EVs for young customers worldwide.”
XPeng’s Chairman and CEO recently said the next decade of EVs will be one of intelligence and smart driving technology. As such, the new brand will deliver AI-centric tech at an affordable price for all, targeting RMB 100,000-150,000 ($14,000-$21,000). Per XPeng’s release:
Vehicles priced between 100,000 to 150,000 yuan have long been the mainstream choice for Chinese consumers. With over 8 million cars sold every year, this price segment possesses abundant market demand, strong development potential, and increasing market share. According to data from the China Passenger Car Association, in 2023, the market share of vehicles priced between 100,000 to 150,000 yuan accounted for approximately 34% of the market, compared to about 31% in 2022. At the same time, the penetration rate of new energy vehicles in this price range is also continuously increasing. However, there are few products in this market segment that offer smart driving functions, let alone AI-driven smart driving.
With its new brand, XPeng intends to tap into a popular EV segment in China and try to dominate by providing technology and smart driving functions that consumers normally don’t gain access to at that price point.
This appears to begin with a lone EV model (teased above), but XPeng says its new brand will continue to introduce multiple models with varying levels of intelligent driving capabilities. We could very well see this new marque eventually expand beyond China, as XPeng is already describing it as an ” entry into a new stage of multi-brand global strategic operation.”
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