Xpeng Unveils New Mass-Market EV Brand Amid Industry Challenges And Global Expansion
Chinese electric vehicle (EV) maker Xpeng has unveiled plans to launch a new mass-market brand, offering models priced between 100,000 and 150,000 yuan (approximately $14,500 to $21,700) that will feature autonomous driving systems. The company aims to reduce the development and production costs of
Chinese electric vehicle (EV) maker Xpeng has unveiled plans to launch a new mass-market brand, offering models priced between 100,000 and 150,000 yuan (approximately $14,500 to $21,700) that will feature autonomous driving systems. The company aims to reduce the development and production costs of its autonomous driving technology by 50% this year. This move follows similar decisions by competitors like Nio, which launched cheaper models in response to BYD's price cuts across nearly all its models in February, as China's government intensifies efforts to support the country's EV industry.
In related news, China's Gotion has filed a lawsuit against Michigan's Green Charter Township, alleging a breach of contract over the connection of water lines to its $2.4 billion battery plant in Big Rapids, USA. The plant is expected to create 2,350 jobs and produce up to 150,000 tons of cathode material and 50,000 tons of anode material annually. Gotion, partially owned by German carmaker Volkswagen, is seeking a preliminary injunction from the court to compel the township to connect the water lines to its plant. The Biden administration's 2022 Inflation Reduction Act has spurred carmakers to race to source more battery and component production in North America to qualify for tax credits.
Meanwhile, Chinese automakers are expanding their global presence by establishing car factories in various overseas markets. BYD, the world's largest EV maker, has set up factories in Thailand, Brazil, Hungary, and Uzbekistan, with more planned for Brazil, Thailand, and Hungary. Chery Auto is considering a car factory in Britain, while SAIC Motor is searching for a site in Europe to establish an EV production plant. Great Wall Motor has a factory in Thailand, and Geely operates factories in Belarus, Britain, and Indonesia. These expansions come as foreign regulators consider measures against imports of China-made electric cars, causing friction with the United States and Europe.
