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Briefing
Jun 29, 2020 · Techweb
Analysis EO
Jun 29, 2020
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Analysis EO
Jun 29, 2020

Xpeng: The Next Chinese EV Star

Key investment thesis A main player in Chinese electric vehicle market. As a key representative of the emerging forces in EV, Xpeng launches influential electric car models annually. It is one of the leading Chinese electric vehicle manufacturers, along with NIO and Weltmeister (a.k.a. WM Motors). Fast-developing autonomous driving technology. Xpeng considers autonomous driving development as its key competitive attribute. With a 300-employee R&D team, the rapidly updating autonomous driving system is bringing Xpeng favor from users and the capital market. Development of self-production. After acquiring Guangdong Foday Automobile, Xpeng is on the way to replace the contract manufacturing mode by fully self-production. The Tesla-like independence of manufacturing is unique compared to other Chinese electric vehicle emerging companies. Key investment risks Weak quality control. Due to EV production regulations in China, startups outsource manufacturing to third parties. Until 2020, Xpeng outsourced its vehicle manufacturing to FAW Haima Automobile. The durability of its car products is something users frequently complain about.  2020 is a hard time for the electric vehicle market. 2020 1H is the first time that sales of electric vehicles have decreased since statistics began to be measured. The COVID-19 crisis is depressing Beijing’s subsidy policy for new energy vehicles. As a startup-stage electric vehicle company that cannot produce stable cash inflow, Xpeng has a higher pressure compared with traditional manufacturers. Business overview Xpeng Motors (Guangzhou Xiaopeng Motors Technology Co Ltd) is an emerging Chinese electronic vehicle manufacturer. Founded in 2014, it has received USD 1.5+ billion funding from top VCs and tech giants including IDG China, Alibaba, Xiaomi, etc. Xpeng’s first volume-production car G3, a middle-level SUV, was published in 2018. Its latest passenger car – P7 – is targeting Tesla Model 3. In the Chinese electric vehicle market, Xpeng is pictured as the follower of NIO (NIO: NYSE). Inspired by the business model of Tesla, they are both emerging forces that focus on electric vehicles + autonomous driving technologies. Both NIO and Xpeng independently develop their car products and have contracted with traditional Chinese vehicle manufacturers as their OEM.  The key feature of Xpeng (and also NIO) is that it runs on an asset-light model. The automotive industry is a sector that requires a long development cycle and deep industrial accumulation. Choosing contract manufacturing can enable Xpeng to make up for its disadvantages in productivity and improve its efficiency as a tech-oriented company. Xpeng has published 2 models  – G3 and P7 – since 2018. And G3 has 2 upgraded models since then.  Xpeng targets Tesla in product design. Xpeng’s latest model – Xpeng P7 – is directly competing with the Tesla Model 3. With a similar design and target user groups, Xpeng P7 set a much lower price to attract its customers. The recent changes in the market trends may bring more uncertainty to Xpeng’s business development. Beijing has announced it will not subsidize new energy vehicles with prices over CNY 300 thousand from 2020 to 2022. Another industry-affecting event is that Tesla has launched its factory in Shanghai, which creates a significant tax benefit for its sales in the Chinese market. These events made Tesla decrease the price of Model 3 by more than 20% early this year, narrowing the price gap of Xpeng P7 and Model 3 to less than USD 10 thousand. With less price advantage, Xpeng P7’s sales will suffer more pressure due to Tesla’s stronger industrial capability and better brand image. Autonomous driving as the key highlight Xpeng focuses heavily on autonomous driving technology.  Its autonomous driving research teams that located in California and China have 300+ employees. According to the founder, Xiaopeng He, Xpeng has always given the intelligence system and the electric power system equal weight. The insightful long-term plan has thus helped Xpeng build the image of the trailblazer and attract fans to form the user community. Xpeng’s autonomous driving system, Xpilot, is developing at a high speed. Since reaching the commercialization stage in 2018, Xpilot has released significant updates almost yearly. Xpeng has an active plan in the near future to launch a series of advanced autonomous driving functions. Many of them are considered hard to commercialize by most manufacturers due to technology or regulation reasons. As a startup with relatively short industrial accumulation, Xpeng’s autonomous driving technology is not as strong as world leading players like Tesla. But compared with Tesla, NIO and most of its competitors, Xpeng is more aggressive in the application of autonomous driving systems. Xpeng P7 has claimed to be equipped with a Level 3 (L3) autonomous driving system, while most manufacturers including Tesla, are at the stage of L2 to L2.5. Xpeng’s rush to enter autonomous driving is mainly backed by the capital market and the ‘fan’ community. According to Xpeng’s report, the Daily Active User (DAU) of its app’s community is 10,000+. While picturing itself as the vanguard of car intelligence, Xpeng integrates a series of fashion and user-friendly technologies into its car models. The innovation spirit attracts followers who are interested in fresh technologies, which allows Xpeng to build the fan community.  Users’ willingness to pay for Xpeng’s new models, in return, enables Xpeng’s products to be more aggressive.  Contract manufacturing to self-production Most emerging electric vehicle manufacturers have problems in vehicle quality control at their starting stage. Xpeng also received some negative feedback, mostly about the vehicle’s durability. Compared with traditional automobile manufacturers, emerging forces start with almost zero accumulation in car production techniques and supply chain. The contract manufacturing model inevitably sacrifices Xpeng’s control over production details. Compared with Tesla, which has already owned independent product lines, Xpeng and other Chinese emerging electric vehicle companies are still at a disadvantage in competition. Xpeng is now in the transition stage from contract manufacturing to Self-production. In early 2020, Xpeng acquired Foday Automobile, which will help Xpeng to gain the qualification of self-production. In May 2020, Xpeng claimed that it had established a manufacturing department in Zhaoqing, Guangdong, and would be able to produce the latest P7 model independently. Now Xpeng is the only manufacturer in the Chinese automotive industry that applies both contract manufacturing and self-production models. With stronger production power and more polished car products, Xpeng will be closer to market leaders. Conclusions In the Chinese electric vehicle market, Xpeng is one of the leading domestic players that is able to challenge Tesla’s dominance. With its signature model P7 released, Xpeng’s sales are likely to rise to a higher stage. In 2019, Xpeng sold 16,609 electric cars, compared with NIO’s 20,946 and Tesla’s 42,715. As the world’s largest electric vehicle market, the Chinese scene is fragmented and competed over by various forces. With solid autonomous driving technology and distinctive company image, Xpeng will earn a larger market share and hold its own position.

News
Jun 12, 2020 · sohu
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Jun 12, 2020 · eastmoney
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Jun 9, 2020 · eeo
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Jun 1, 2020 · 36Kr
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May 31, 2020 · eastmoney
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May 20, 2020 · sohu
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May 20, 2020 · sohu

Xpeng Obtains Production License

News EO
Mar 22, 2020
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News EO
Mar 22, 2020

Xpeng Motors Acquires Fellow EV Maker Fudi

The reason behind the acquisition may have been to enable Xpeng Auto to produce its electric vehicles (EV) independently (source in Chinese) – without cooperation with other carmakers. Although founded in 2014, and despite considerable success, Xpeng Motors didn’t have its own car manufacturing facilities before the takeover. This was mainly because of the Chinese government’s encouragement to EV startups to outsource their production with well-established domestic manufacturers. With this encouragement, the government wanted to give startups some time to adjust their plans to the complicated and costly process of obtaining a manufacturing license. As a result, previously Xpeng Motors was cooperating with Haima Automobile Co., Ltd. (海马汽车) and relying on Haima’s car manufacturing capacities for original equipment manufacturer (OEM) production. Haima Automobile is based in Haikou, Hainan and a subsidiary of FAW Group. The company’s main activity is the production of passenger cars for other companies. It was founded in 1992 as a joint venture between the Hainan provincial government and Mazda to produce Mazda models for sale in China. Since 2014 the company has been helping to produce various Xpeng Motors cars, such as the Xpeng G3, released in 2018, and delivered 16,608 vehicles in 2019. However, this time Xpeng wants full authority in the production of the company’s upcoming Xpeng P7 EV model. Therefore, a few days ago, the company acquired Guangdong Fudi Automobile (广东福迪汽车). The shareholder of Fudi was changed to Zhaoqing Xiaopeng New Energy Investment Co., Ltd., and the company’s legal representative has also been switched to Xpeng Automobile’s Co-founder and President, Xia Yi. What makes Fudi the perfect company to acquire for Xpeng? It may be that the company’s roots go back all the way to 1988 and it is experienced in the production of vehicles – primarily pick-up trucks and sport utility vehicles (SUV), automotive parts and stampings. Previously Fudi products have been sold in various countries under the Fudi and Foday brands. In fact, the acquisition of a domestic car manufacturer with mass production qualifications approved by the government is a widely used practice in the industry. To illustrate, Ideal Motors purchased 100 percent of Chongqing Lifan Automobile Company for approximately USD 91 million ( CNY 650 million) in 2018. The purpose of the acquisition was precisely to obtain Lifan Automobile’s car manufacturing capacity. Now, thanks to Fudi’s manufacturing license, which will be available for Xpeng with the acquisition, the company will be able to produce the Xpeng P7 independently.

Announcements
Mar 9, 2020 · XiaoPeng
Announcements
Mar 9, 2020 · XiaoPeng

Xpeng P7 boasts 706km NEDC range, verified by MIIT of China.

Announcement: Click here
Announcements
Feb 21, 2020 · XiaoPeng
Announcements
Feb 21, 2020 · XiaoPeng

Free Front-payment

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News
Feb 7, 2020 · Sina
News EO
Jan 14, 2020
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News EO
Jan 14, 2020

China's EV Maker Xpeng Motors Delivers 16,608 G3 Models in 2019

Xpeng Motors (小鹏汽车) announced it had delivered a total of 16,608 units of its model Xpeng G3 in 2019, according to information disclosed by the firm to Chinese automotive market researcher firm, AC Automotive (AC汽车). In early 2019, the electric car maker planned to deliver around 40,000 G3s by the end of 2019. It announced the opening of six service centers in China at the same time, including Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, and Dongguan.  In a statement last May, Xpeng stated it had delivered 2,704 model G3s, ranking it first among the domestic EV manufacturers. In the same month, the rivals WM Motors (威马汽车) and NIO (蔚来, NIO: NYSE) delivered 2,056 and 1,068 units, respectively. However, with this announcement, the company's primary goals were not yet met, with 58% fewer cars sold. Later in June, the company upgraded the G3 with the installation of the Integrated Cruise Assist (ICA) and Traffic Jam Assist (TJA) system, marking Xpeng G3's official entrance into the L2-class era of smart driving. The function mainly monitors the position of lane markers and actively controls the steering wheel to assist the driver in keeping the vehicle in the middle of the lane.  The carmaker also stated that it had delivered more than 90% of medium-to-high-profile models equipped with autonomous driving assistance; the overall sales of personal user's car reached 83%, making it the company with the highest proportion of C-end users. At the 17th Guangzhou International Automotive Exhibition (Auto Guangzhou 2019), Xpeng Motors unveiled its next-generation smart vehicle, the Xiaopeng P7 (小鹏P7). Moreover, the domestic rival WM Motors, which raised USD 430 million in its latest funding event led by Tencent Holdings (0700:HK), also released its new electric car, WM EX6 Plus, to cut through the competition.   China's electric vehicle market is experiencing fierce competition, particularly with the installation of Tesla's Gigafactory in Shanghai (the USD 4.5 billion factory was concluded in a record 10 months). Nevertheless, the US electric vehicle maker made its first Tesla China-made Model 3 delivery debut last Monday (cutting its price by 16% after receiving government subsidies).  Therefore, government subsidies to EV makers are also playing a pivotal role in EV market growth in the long run. After cutting the subsidy in 2019 for new energy vehicles with over 400 kilometers of range from USD 7200 to USD 3600, the government announced it would not cut the subsidies of NEVs in 2020, according to Reuters. The grants will support the domestic and foreign China-based (like Tesla) EV makers to push the production and increase the supply of EV cars, which in the long run, will create a more sustainable EV market.

News
Dec 25, 2019 · zgjingji
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Dec 19, 2019 · sohu
News EO
Nov 24, 2019
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News EO
Nov 24, 2019

Xpeng Motors Unveils P7 Sports Sedan

Guangzhou-based automobile manufacturer Xpeng Motors officially unveiled its next-generation smart vehicle, the Xiaopeng P7 (小鹏P7), at the 17th Guangzhou International Automotive Exhibition (Auto Guangzhou 2019). The vehicle, built on the Smart Electric Architecture platform (SEPA), possesses advanced autonomous driving capabilities and powerful performance, optimizing the driving experience with faster response times, sharper perception  and greater comfort. The retail pre-sale price of the P7 ranges from CNY 270,000 to 370,000 (USD 38,400 to 52,600), according to XPeng news. Different from the traditional cars, the Xiaopeng P7 offers a smart ‘music’ cockpit which contains 47 sensing devices and nearly 50 human-car interaction devices, backed by more than 30 teraflops of computing power. The cockpit is also equipped with an 18-speaker top-tier Dynaudio Confidence sound system. The P7’s advanced features include:  Smart Electric Platform Architecture with NVIDIA DRIVE Xavier™, NVIDIA’s most advanced autonomous vehicle chip, and QUALCOMM’s top-line vehicle processor  XPILOT 3.0 advanced driver assist system, upgradable to XPILOT 4.0 Recently, the company raised USD 400 million in its Series C funding round with Xiaomi Corporation as a new strategic investor. The Guangzhou Auto Exhibition also brought another two major automobile manufacturers, the America-based automotive maker Tesla and the Shanghai-based automotive manufacturer WM Motor, who unveiled their new electric cars. Tesla CEO Elon Musk revealed a new generation of electric pickup trucks baptized with the name of ‘Cybertruck.’   Cybertruck comes at different versions and prices. The cheapest starts at USD 39,900, while the most advanced (expensive) version, the Tri-Motor WD, will begin at USD 69,900. It also comes with Tesla’s ‘self-driving’ option for an additional USD 7,000.  Elon claims that Cybertruck is more capable in terms of towing and hauling, than a Ford F-150 and perform as a better sports car than a Porsche 911.  WM Motors (威马汽车), which recently raised CNY 3 billion (USD 430 million) in its Series C funding round led by Tencent (0700:HK), released its new electric car, ‘WM EX6 Plus.’ The EX6 Plus is an upgrade of EX 5, which comes with five seats and can achieve 500 km when it is fully charged. The car is equipped with an intelligent voice assistant capable of mix commands and mixed Chinese and English recognition powered by AI.  Wei Hui (沈晖), the founder and CEO of WM Motors, said in an interview after the press conference that the WM EX5 and EX6 Plus are two complementary products.  Now the A-level, A+-level and B-level functions are relatively complete. The EX6Plus is a perfect product. The key to competitive products is that the products are made to make users feel safe and reliable, stable in quality, excellent in experience and reasonable in cost,” said Wei Hui at the press conference. The first line of EX 6 Plus cars will be limited to 600 units, and the official price is at CNY 289,900 (USD 41,185). China has become the home of the most advanced electric car producers. It’s believed it will lead the world in automotive production and make up the main chain of auto parts suppliers in the future. Further steps have been made in this direction with the opening of Tesla’s ‘Gigafactory’ in Shanghai and the start of the mass production of electric cars.

News EO
Nov 12, 2019
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News EO
Nov 12, 2019

XPENG Motors Secures USD 400 Million in Series C

On November 13, Xiaomi (小米) and Matrix Partners China (经纬中国) announced the injection of a total of USD 400 million into XPENG Motors (小鹏汽车). Previously, the automaker raised CNY 4 billion in its Series B+ round of financing in August 2018, which was led by Primavera Capital (春华资本), Morningside Venture Capital (晨兴资本) and He Xiaopeng (何小鹏), the current chairman and CEO of the company. Its post-money valuation thereby hit CNY 25 billion. Founded in 2014, the Guangzhou-based company is one of the leading Chinese automobile manufacturers. So far, the firm has delivered its G3 model to the market, though only 522 cars were shipped last year due to its limited capacity. At the ‘1024 XPENG Motors Intelligent Technology Sharing’ conference held by the company recently, Mr. He disclosed that XPENG Motors is expecting to achieve mass production of ‘Level three automatic driving’ (XPILOT3) by the end of 2020. The company is on its way to reaching XPILOT4 in 2022 – the autopilot capability that fully adapts to driving in cities. Its upcoming model – Xiaopeng P7 (小鹏P7), a purely electric vehicle that emphasizes performance – has great potential from the perspective of some market insiders. According to their estimates, the price of this model is likely to be similar to that of the Tesla Model 3 which has been just mass-produced domestically. Just as the company’s previously released G3-520 is the first new energy vehicle in China empowered with the NCM811 battery produced by Contemporary Amperex Technology (宁德时代), the Xiaopeng P7 is expected to come equipped with the high energy cell with the same density. Expected to be unveiled at the 2019 Guangzhou Auto Show, the mass production of Xiaopeng P7 is scheduled to be delivered around the second quarter of 2020. China’s electric vehicle industry is receiving positive news these days. Apart from XPENG Motors’ announcement of its next round of funding, the stock price of NIO (蔚来) also surged up in recent days, which somehow suggests a slight recovery in the sector.

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