Xpeng Ventures into Affordable EV Segment Amidst Fierce Competition in China

Xpeng, a prominent Chinese electric vehicle (EV) manufacturer, has revealed its intentions to penetrate the fiercely competitive EV market segment by launching a more affordable brand. The announcement was made by Xpeng Chairman and CEO He Xiaopeng during an industry event in Beijing, as shared on the company's official WeChat account.

According to He Xiaopeng, models under this new brand are slated to hit the market within the next month and will be priced between 100,000 yuan and 150,000 yuan ($14,000-$21,000). This pricing strategy significantly undercuts the 200,000-300,000-yuan range typically associated with premium EV manufacturers.

The move comes amidst heightened competition within China's EV market, spurred by aggressive price-cutting measures initiated by companies like BYD, the market leader. Xpeng aims to differentiate its new brand by offering models with varying levels of intelligent driving capabilities, emphasizing a commitment to developing "the first AI-assisted driving car for young people."

Despite a slight slowdown in the growth of battery-powered EV sales in China, dropping from 20.8% in 2023 to 18.2% in the first two months of this year according to the China Passenger Car Association, Xpeng remains optimistic about its prospects in the evolving EV landscape.