Xpeng, a Chinese electric vehicle (EV) manufacturer, plans to release three new models in 2023 to recover from the decline in sales caused by the Covid-19 lockdowns.
New EV Models
According to the South China Morning Post (SCMP) report, two individuals familiar with the company's plans have said that the Guangzhou-based automaker would introduce an improved version of its best-selling P7 saloon, a mid-sized SUV, and a minivan or multipurpose vehicle (MPV).
This year, the only vehicle released from the smart car manufacturer was the G9 luxury SUV.
After recent months of production losses due to a stressed supply chain, the manufacturer has launched an ambitious campaign to design and build new automobiles in the face of heightened competition.
The improved P7 and the mid-size SUV, which is meant to compete with Tesla's popular Model Y, will be ready for shipment to consumers next year. Meanwhile, the MPV might take longer, according to the sources.
A Xpeng P7 car is seen during the 19th Shanghai International Automobile Industry Exhibition in Shanghai on April 19, 2021.
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China's Covid-19 Cases
Xpeng, with Nio of Shanghai and Li Auto of Beijing, is seen as China's finest answer to US electric car manufacturer Tesla in the world's biggest market for such vehicles.
However, due to Beijing's zero-Covid approach amid a spike of coronavirus infections in the manufacturing center in Guangzhou, Xpeng could not assemble and deliver enough cars to its clients.
Xpeng vice chairman and president Brian Gu told SCMP in November that Xpeng had to temporarily halt operations at its regional distribution centers because of a damaged logistical network caused by the Covid-19 epidemic.
Gu predicted that Xpeng would return to pre-pandemic production levels, with deliveries of about 10,000 cars in December.
Over 150,000 Covid-19 cases were reported in this city in the southern province of Guangdong between October and November.
Currently, China has given up on its zero-Covid policy, having just issued a 10-point set of instructions promising to ease pandemic measures. These include mass testing, health codes, and centralized quarantine rules for most cases.
Market Competition
Shanghai Mingliang Auto Service CEO Chen Jinzhu remarked that Xpeng could target various drivers with additional models. Nevertheless, its reputation as a luxury EV manufacturer may suffer if it diversifies its product line.
Xpeng co-founder and CEO He Xiaopeng said in May's financial results conference that automobile costs would be between ¥150,000 and ¥400,000 or between $21,500 and $57,300.
Xpeng's effort to create a minivan indicates the company's aspirations to compete with major automakers like General Motors.
Luxury minivans are quite popular in China among affluent families with two or more children, even if the MPV market is not increasing rapidly.
The Buick GL8, produced by General Motors, was the best-selling premium minivan in North America in 2021, with sales of 161,308. This represented a year-over-year increase of 2.9%.
The China Passenger Car Association predicts that sales of new-energy vehicles (NEVs) in China will exceed 6 million units this year, twice the amount sold in 2021. NEVs include pure electric, plug-in hybrid, and fuel-cell automobiles.
Beijing's elimination of cash incentives for NEV purchasers is expected to impede the market's expansion in 2023, although it is still likely to develop.
