For the X9, we see it as a major development in the battery electric vehicles sector for MPVs, Brian Gu, Xpeng's Vice Chairman and Co-President, informed CNBC in an exclusive interview on Friday. Last month Xpeng launched the X9 large 7-seater EV constructed on its SEPA2.0 architecture, targeting the Chinese market. This falls in line with a range of domestic EV participants such as Nio, Huawei, and Zeekr, who have made similar revelations regarding electric vehicles. Chinese consumer electronics firm Xiaomi has also recently announced its own EV, intensifying the competition.
Xpeng recently unveiled the X9 model, built on their SEPA2.0 architecture for the Chinese market. This 7-seater EV is anticipated to be a "game changer" for the battery electric vehicles segment of MPVs (multi-purpose vehicles), according to the company's Vice Chairman and Co-President, Brian Gu. During an exclusive interview with CNBC's Emily Tan, Gu explained that the X9 series, which is priced between 359,800 yuan and 419,800 yuan (about $50,360 to $58,760) with immediate deliveries, is equipped with innovative technology, superior handling and smart driving technology, all found in a beautifully designed product, and has the potential to become the top seller in its category.
The unveiling of Xpeng's new release arrives at a time when other domestic EV players, such as Nio, Huawei, and Zeekr, have recently introduced their electric vehicles. Additionally, Chinese consumer electronics corporation Xiaomi is entering the market by debuting its first EV.
Xpeng outlined plans to introduce driver-assist technology in China by the end of 2020 and in Europe by 2024. On Jan. 2, the Chinese EV maker also signed a collaboration framework with Guangdong Huitian to produce, develop, and distribute aerial vehicles. Xpeng will provide research and development, technology advisory, and sales representative services to Guangdong Huitian. Gu remarked that the firm expects to grow faster than the industry rate in 2024 and thus, expand their market share. Gu further stated that the X9 will be a high-margin product.
Competition is tightening in the Chinese EV market, with BYD, Li Auto and Geely numbering amongst the few that accomplished their annual sales goals. Xpeng and Nio were among those that did not reach their targets. Xpeng supplied a total of 141,601 units in 2023 - a 17% increase compared to the year prior - yet still short of the firm's target of 200,000 as reported by local media. Morningstar analyst Vincent Sun noted in a Nov. 16 report that the focus of investors for the upcoming year lies in whether Xpeng can manage steady delivery progress with fresh launches and increase their gains in a tough rate landscape.
In 2023, Nio delivered 160,038 vehicles - a 30.7% increase from the previous year - however, it was still significantly lower than its goal of around 245,000 cars as stated on their fourth quarter earnings call. On the other hand, Li Auto made a notable milestone of 300,000 vehicles, reaching 376,030 deliveries in 2023. Furthermore, BYD achieved a landmark of 3 million vehicles in the same year, outselling Tesla and becoming the world's largest EV producer in the fourth quarter. BYD had 3.05 million vehicles produced while Tesla reported a total of 1.84 million vehicles in 2023.
Gu is confident about China's EV market come 2024 despite the difficulties. He stated that “2024 is going to be a highly competitive year” due to the addition of fresh models and brands. He continued, “We observed that EV penetration rates had climbed up to 40% by the end of 2023 and that speaks to the strong momentum that the sector has been garnering." TrendForce's data revealed that the new energy vehicle market in China exceeded 40% for the first time in November and positive growth is expected in the coming year.
Gu stated that there are several factors driving the growing demand for new energy vehicles, such as technological developments, the introduction of new products, and the switch from traditional combustion engines to new energy vehicles. He emphasized that in order to stay competitive, they must focus on offering technology that stands out, and a cost-effective approach that utilizes both scale and innovative technology.
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