Xpeng to launch cheaper EV brand in competitive Chinese market

Chinese manufacturer of electric vehicles (EVs), Xpeng, revealed plans to introduce a less expensive brand, joining a fiercely competitive market where EV prices are fiercely rivaled.

Xpeng's Chairman and CEO, He Xiaopeng, recently announced that their brand's models will be available for purchase in the next month. The price range of these models will be 100,000 to 150,000 yuan ($14,000 to $21,000), as confirmed by the company's official WeChat account.

This is in stark contrast to the typical price range of 200,000–300,000 yuan for electric vehicles from top-notch manufacturers. With the market leader BYD taking the lead in a more comprehensive wave of price reductions, the competition in China's EV market has intensified, compelling businesses to slash their costs to stay competitive.

Xpeng has announced its plans to launch a series of models featuring different levels of intelligent driving capabilities under a new brand, which has not been named yet. The company's goal is to develop the first car with AI assistance specifically designed for young drivers. Meanwhile, the China Passenger Car Association reported a decrease in sales of battery-powered EVs in China, dropping from 20.8% for the entire year 2023 to 18.2% in the first two months of this year.