“We will launch a class A compact EV at a price range of between 100,000 yuan and 150,000 yuan, which will come with an advanced driver assistance system, for both the China and global markets,” He said during the China EV 100 Forum in Beijing, according to a video clip seen by the Post. “In future, cars with the same prices might be developed into fully-autonomous vehicles.”
Xpeng confirmed He’s remarks and said in a statement that the company envisions slashing the development and production costs of autonomous driving technology by 50 per cent this year. At present, Xpeng assembles smart EVs that are sold at more than 200,000 yuan.
Premium EV makers are actively looking to grab a slice of the pie from BYD, said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “The segment where EVs are priced from 100,000 yuan to 150,000 yuan is dominated by BYD, which has a variety of models targeting budget-conscious consumers,” Han said.
Xpeng’s move to occupy a lower price point also comes as China’s government doubles down on efforts to nurture the country’s EV industry.
The world’s automotive industry is making a “strategic transformation” towards electrification, Gou Ping, vice-chairman of the State-owned Assets Supervision and Administration Commission under the State Council, said during the forum.
Xpeng’s first right-hand drive EV to hit Hong Kong, SE Asia roads this year
Xpeng’s first right-hand drive EV to hit Hong Kong, SE Asia roads this year
To underscore the government’s push, the commission will conduct independent audits of electrification efforts made by China’s largest state-owned carmakers, said Zhang Yuzhuo, the commission’s chairman.
Last month, He told the company’s employees in a letter that Xpeng would spend a record 3.5 billion yuan this year to develop intelligent cars. Some of Xpeng’s existing production models, such as the G6 sport-utility vehicle, are capable of navigating their way automatically along city streets using the company’s Navigation Guided Pilot system. But human intervention is still required under many circumstances.
Fitch Ratings warned last November that EV sales growth in mainland China could slow to 20 per cent this year, from 37 per cent in 2023, because of economic uncertainties and intensifying competition.