Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Renault committed to stronger alliance with Nissan, chairman says
      Stellantis has positive stock market debut after FCA-PSA merger
      Audi idles 10,000 staff on chip shortage
      Spotlight will find low-key Tavares as he takes over new empire at Stellantis
    • Stellantis has positive stock market debut after FCA-PSA merger
      Audi idles 10,000 staff on chip shortage
      Fiat Chrysler and PSA complete merger to become Stellantis
      Dacia-Lada business unit will unleash brands' power, Renault execs say
    • Ford, Audi, Daimler reduce German output on chip supply shortages
      Airline chief to head Swedish bearings maker SKF
      Nvidia CEO says software will soon define the car, drive profit
      LG Magna-MAIN_i.jpg
      At CES, Magna touts new deal with LG
    • Dacia-Lada business unit will unleash brands' power, Renault execs say
      Renault to follow Peugeot, VW in seeking higher transaction prices
      Renault to boost low-volume Alpine brand with 3 EVs
      view gallery
      8 photos
      Dacia Bigster
    • Mercedes badge_1.jpg
      Mercedes meets European CO2 target with late-year surge in EV sales
      EV-only future looks closer than ever in Europe
      VW to link bonuses to social targets
      New EU 'green-washing' rules will force automakers to be transparent
    • Stellantis seeking new joint venture in China, reports say
      Russia's new-car sales fall 2% in December
      FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
      Benz plant in Beijing.jpg
      Mercedes, Audi, BMW post record China deliveries
    • Renault names motorcycle team boss Brivio to lead Alpine F1 team
      Airline chief to head Swedish bearings maker SKF
      Renault names former Google exec to run Alpine brand
      Bentley's top designer, Sielaff, to leave; may join Geely
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Supplier Spotlight
    • Focus on Electrification
    • Latest Launches
    • Analyst's View
    • Segment Analysis
    • Europe By The Numbers
    • EV-only future looks closer than ever in Europe
      European car retailing poised for shake-up as 'agency' model gains support
      How Europe will become an EV battery powerhouse
      VW, Ford stumbles force rethink of how to best use social media
    • Nvidia CEO says software will soon define the car, drive profit
      Tavares: Keeping PSA, FCA merger on track an 'incredible' achievement
      Renault CEO outlines ambitious revival plan
      Why Rolls-Royce boss expects to be profitable despite COVID
    • Veoneer boss expects to reach key milestone this quarter
      How Faurecia aims to become a hydrogen leader
      How Yanfeng gave the car interior a brain
      FCA suppliers in Europe at risk from switch to PSA platform, experts say
    • Chinese EV maker Xpeng outlines Europe rollout plan
      Arrival Van.jpg
      How Arrival intends to disrupt the delivery van market
      Polestar 2's performance, convenience offset range anxiety
      Nio ET7-MAIN.jpg
      Nio debuts first electric sedan
    • BENTAYGAHYBRID-MAIN_i.jpg
      Bentley freshens Bentayga Hybrid
      Dacia turns to familiar playbook for all-new Sandero
      BMW 4-Series Coupe breaks free from sedan sibling
      Hyundai counts on new Tucson to become its Europe top-seller
    • Pandemic forces automakers to focus on brand, conserve cash
      Why prospects for dealer mergers have improved
      Dacia-level price discipline needed to end margin slump in Europe, expert says
      How infotainment systems are taking over the vehicle cockpit
    • Wagons hold market share, but costly EV shift looms
      Electrification gains speed in Europe's key compact segment
      Hybrids beat the market; sales expected to top 1 million in 2022
      Plug-in hybrids set for rapid rise but trouble looms
    • Russia's new-car sales fall 2% in December
      Europe sales by model, Nov. and 11 months: Audi A3, Jeep Compass rise; Toyota Yaris surprises
      Top 10 sellers by market, 11 months: Skoda a top 5-seller in 13 countries
      Turkey sales, Nov. and 11 months: Ford, Renault-Nissan, FCA, Hyundai-Kia surge
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • Polestar 2's performance, convenience offset range anxiety
      Bosch, Continental battle to supply the brain of the connected car
      Why the ID5 is VW's true rival to the Tesla Model Y
      Volvo, Daimler CEOs praised for leading push to computerize cars
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • view gallery
      8 photos
      Dacia Bigster
      view gallery
      8 photos
      Renault 5 concept
      view gallery
      15 photos
      Toyota Mirai 2021
      view gallery
      10 photos
      Fiat Tipo Cross
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      9 photos
      Seat Tarraco
      view gallery
      7 photos
      Toyota Corolla station wagon
    • view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
      view gallery
      9 photos
      Mini Clubman
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Focus on electrification
January 14, 2021 12:00 AM

Chinese EV maker Xpeng outlines Europe rollout plan

Nick Gibbs
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    "In the future, our new vehicle development will have more European specifications in mind," Xpeng President Brian Gu said.

    Along with Nio, Xpeng is the Chinese electric startup most closely trying to match Tesla's success. The automaker delivered 27,041 vehicles in 2020. That included Xpeng's first 100 models in Norway, marking the brand's European sales debut. A U.S. stock listing last year added more than $4 billion to its already healthy cash pile, enabling the company to finance plans to double its EV model range to four. Xpeng President and Vice Chairman Brian Gu discussed the company's plans for Europe and beyond with Automotive News Europe Correspondent Nick Gibbs.

    Xpeng recently started selling the G3 electric SUV in Norway. Which other European markets are you targeting?
    Europe is a big opportunity because the number of EVs sold there will beat China [in 2020]. But Europe also has a lot of incumbent brands, so we are taking our time and doing a thorough job. We are still discussing our execution plan for the rest of Europe. We have not finalized which countries will be next. That will be revealed in the next four months.

    Aren't you worried that Xpeng might miss out on EV-friendly incentives in key markets?
    We don't want to be late, but at the same time it's much more important to establish your brand and reputation properly when you're a new entrant. You do this by having the right infrastructure, the right sales and service, and the right brand recognition. It's easy to dump hundreds of vehicles on a country, but that's not how to develop a business.

    How will you sell vehicles to Europeans?
    It all depends on the country. In Norway, we are working with a local partner [Zero Emission Mobility] to handle sales and service functions. We will provide technical support and software updates. This is similar to what we do in China. We will reveal our plans for other countries later.

    What is your plan for the U.S.?
    The U.S. will be a more difficult country to crack. Europe is more our focus.

    Meet the president

    NAME: Brian Gu
    TITLE: Xpeng President and Vice Chairman
    AGE: 47
    MAIN CHALLENGE: Globalizing an unknown electric brand and fulfilling a promise to bullish U.S. investors.

    What vehicles do you need for a Europe-wide launch?
    We have the G3 [compact SUV] and will evaluate the P7 sports sedan for Europe. In the future, our new vehicle development will have more European specifications in mind.

    You have two models now. What comes next?
    For China in 2021 we will have a smaller family-sized sedan, the size of a Honda Accord or Toyota Camry. The fourth product coming in 2022 will be an SUV that is larger than the G3 and based on the P7's platform.

    Xpeng went public in the U.S. this year, raising about $4.2 billion. What will this money enable you to do?
    Capital is quite important for players in this race to stay ahead. We are still very early in the game. If you look at the penetration rate of EVs it's low single digits today, and while it is rising quickly it's still very early. There are other new entrants and also incumbents that have vast resources. So, we have to capitalize to take on those challenges and maintain our leading role in a number of areas, such as technology and artificial intelligence.

    What sets Xpeng apart from competitors?
    First, our product has the design, features, range and specification to make it very competitive. The P7 has one of the longest driving ranges in China [more than 700km], for example. Second, we develop most of our technologies in-house, especially software. We are probably the only company with in-house full-stack [end-to-end software] development other than Tesla. Most companies are working with Tier 1 suppliers. Third, our product is not designed for the superrich. We don't start with a luxury positioning like Nio or others. Our product is focused around the $30,000 to $45,000 area, which is the most attractive market segment.

    When will Xpeng be profitable?
    We achieved a positive gross margin last quarter and that is expanding as we speak as our volume grows. As a company that's growing really fast, we have to invest in the future, not just the r&d side, but also lots of investment in autonomous driving, batteries, powertrains, and we also need to lay down the infrastructure to really grow the company in China and in Europe. So, in the near-term, we are not going to achieve profitability very soon because all this investment will have to be amortized by selling a large number of vehicles, but we are confident in the long run this will make us more profitable and competitive.

    Xpeng recently started selling the G3 electric SUV in Norway.

    What is your manufacturing strategy?
    We have our own factory in Guangzhou that is producing the P7. The G3 is produced with a contract manufacturer [Haima, a subsidiary of FAW] in central China. We are building a second plant in Guangzhou that will be online by 2022, just in time to manufacture our fourth product [the larger SUV].

    So, the traditional way of manufacturing suits you fine?
    I think it's a very efficient way to operate, especially when you have enough volume. In the early years we didn't have much visibility on volume, which is why we opted to go with a contract manufacturer. As we increase volume and gain confidence about the sales prospects of our products, having our own plant is much better.

    Would you make cars in Europe?
    We will absolutely be thinking about this. If you have a large volume you just increase trade tensions between China and Europe [if you only import models], therefore having local capacity is much better. It is also better logistically.

    Would you take over someone else's plant?
    Every country is different. In China it's better to build your own factory than take over someone else's because when you build something the government will give you a lot of resources. In Europe maybe it's better to buy something.

    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.

    There are a lot of EV automakers competing in China. What is your outlook for the market?
    Today it's very fragmented with dozens of EV brands competing for market share. Only a few will survive, so the market will be more concentrated and dominated by four to six players, each with more than 10 percent of the EV market. Obviously, we want to be one of those players. To do that you have to offer EVs with smart capabilities.

    How do you define a smart EV?
    First, the cabin has to interact with you. It knows you, can follow your commands, understand your voice and use visual recognition and AI to create a very unique experience. Second, the car has to be able to drive autonomously in most scenarios. Third, the car has to be very easy to update.

    When will you offer hands-off autonomous driving in China?
    In China we are approaching Level 3 [conditional autonomy] even though no one has fully defined what Level 3 is. Our cars are already functioning as much as they can without human intervention on the highway, but regulations need to know there's human responsibility. We have plans to offer Level 3 autonomy, not just on highways but in city driving situations too, in a year or so.

    When will autonomous driving be allowed in China and where?
    It needs to be tested more robustly, in terms of error rates and the safety profile. Certain municipalities might be more advanced in allowing it in their cities, but it will take time to get Level 4.

    You buy batteries from CATL. Are you doing your own battery cell research?
    We are not looking at making batteries. It's very capital intensive, but also a big technology risk that we don't think we should take. We want to work with leading suppliers, but we also want to control some of the key technologies; for example, we do our own battery management systems.

    Do you believe flying cars could become reality or is your research more of a publicity generator?
    We are definitely not in this for a publicity stunt. We believe that as a smart EV leader we need to think about future mobility, which will come in different forms. Low-altitude flying will be part of that. Clearly there are a lot of things to figure out from the tech and policy perspective. But the research we are doing on batteries and powertrain motors, lightweight materials, sensors, autonomous driving and Al can be deployed in different modes of transportation. That is why I think it's natural to really extend ourselves into other areas such as flying cars and robots for last-mile transportation.

    RECOMMENDED FOR YOU
    Renault committed to stronger alliance with Nissan, chairman says
    Recommended for You
    Renault committed to stronger alliance with Nissan, chairman says
    Renault committed to stronger alliance with Nissan, chairman says
    Stellantis has positive stock market debut after FCA-PSA merger
    Stellantis has positive stock market debut after FCA-PSA merger
    Audi idles 10,000 staff on chip shortage
    Audi idles 10,000 staff on chip shortage
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Supplier Spotlight
      • Focus on Electrification
      • Latest Launches
      • Analyst's View
      • Segment Analysis
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us