Brian Gu, vice chairman and co-president of Xpeng, 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) battery electric vehicle segment. “I’m working on it,” he said.
“We believe this has the potential to be a top seller in this category, as it features highly innovative technology and design, as well as superior maneuverability and industry-leading smart driving technology. I think it’s packed into a product with a very beautiful design,” Gu said.
The new launch of Xpeng comes in the wake of several domestic EV players such as Nio, Huawei, and Zeekr recently announcing new electric vehicles. Even Chinese consumer electronics company Xiaomi is launching its first EV to compete in the market.
In 2024, it is expected to grow much faster than the industry growth, which means it will be able to increase its market share.
brian goo
Xpeng Vice Chairman and Co-President
Xpeng has set out ambitious plans to roll out driver assistance technology in China by the end of last year and in Europe by the end of 2024.
The Chinese EV manufacturer also signed a cooperation framework agreement on the manufacturing, development and sales of flying cars with Guangdong Huiten on January 2, and Xiaopeng will provide Guangdong Huiten with research and development, technology consulting services and sales agency. will provide services.
“In 2024, we expect our company to grow much faster than the industry growth. This means we can expand our market share,” Gu said, adding that the company expects to grow more rapidly than the industry. It added that it aims to improve profit margins with larger scale and a better product mix.
“X9 will be a very profitable product for us,” Gu said.
Competition is intensifying in China’s EV market, with BYD, Li Auto and Geely Automobile among the few companies that have achieved annual sales targets.
Xpeng and Nio were among those who missed the mark.
Xpeng delivered a total of 141,601 units in 2023, an increase of 17% over the previous year. This fell short of the company’s annual delivery target of 200,000 vehicles reported by local media.
“Investors are paying attention to [for 2024] Our view is whether the company can maintain decent delivery momentum with new product launches and improve profitability in a tough pricing environment,” Morningstar analyst Vincent Sun said on Xpeng. stated in a memo dated November 16th.
It is clear that 2024 will be a very competitive year with many new models and new brands being launched in this segment.
brian goo
Xpeng Vice Chairman and Co-President
Nio delivered 160,038 vehicles in 2023, an increase of 30.7% year-on-year. However, his fourth-quarter results were still well below the target of approximately 245,000 units based on management’s goal of “doubling unit sales” in 2022.
Li Auto delivered 376,030 vehicles in 2023, achieving the annual delivery milestone of 300,000 vehicles.
On the sales front, BYD hit its 2023 target of 3 million units, sold more battery-powered vehicles in the fourth quarter than its U.S. rival, and surpassed Tesla to become the world’s best-selling EV brand. Ta.
BYD produced 3.05 million vehicles in 2023, while Tesla announced it produced 1.84 million vehicles in the same year.
Despite the challenges, Gu is optimistic about China’s EV market in 2024, saying that with the launch of new models and brands, “2024 will be a very competitive year.”
“I think China’s EV sector ended the fourth quarter on a very high note, with penetration approaching 40% towards the end of 2023, the highest point the industry has seen to date. ” said Mr. Gu. “So all of this points to strong momentum.”
China’s new energy vehicle penetration rate exceeded 40% for the first time in November, with “optimistic growth” expected by 2024, according to TrendForce.
“I think we’re going to continue to see a lot of catalysts, obviously technologies, product launches, and the continued transition from internal combustion engines to new energy vehicles that will drive the growth of the new energy vehicle market,” Gu said. . .
New energy categories include electric and plug-in hybrid power sources.
“However, to remain competitive, we must still focus on innovative technology differentiation and maintaining a very strong cost-effective competitive advantage, not only in terms of innovation but also in terms of scale. “I think there is a need,” he added.