Xpeng Introduces Budget-Friendly Electric Car Brand Amid China's Competitive Market
Chinese electric car maker Xpeng plans to introduce a new, cheaper brand, signaling its entry into a fiercely competitive segment within the electric vehicle (EV) industry.
Xpeng's Chairman and CEO, He Xiaopeng, announced the company's intentions at an industry event in Beijing. The new brand, set to launch within the next month, will offer models priced between 100,000 and 150,000 yuan ($14,000-$21,000). This pricing strategy contrasts with the 200,000-300,000 yuan range typically associated with premium EV makers.
Intense Price Competition in China's EV Market
Competition in China's EV market has intensified, prompting companies to slash prices. Market leader BYD has led the charge in implementing significant price cuts. Xpeng's move to introduce a more affordable brand reflects the shifting dynamics of the Chinese electric vehicle market.
Xpeng's Strategy for the New Brand
Xpeng aims to differentiate its new brand by offering models with varying levels of intelligent driving capabilities. The company's goal is to create "the first AI-assisted driving car for young people," catering to the preferences of younger consumers.
Advertisement
Market Trends and Outlook
While sales of battery-powered EVs in China experienced a slight decline in the first two months of the year, dropping to 18.2% from 20.8% in 2023, according to the China Passenger Car Association, Xpeng's venture into the affordable EV segment underscores the evolving landscape of the Chinese electric vehicle market.
Also Read: Xpeng, Chinese EV Manufacturer, to Expand Workforce by 4,000 and Focus on AI Development
