Shares in Chinese automakers Xpeng and Geely Auto tumbled on Tuesday on worries they will struggle to compete against BYD's move to offer free smart driving features on almost all of its models. Xpeng's shares fell as much as 8.4% and Geely's dropped as much as 11.1%, both in the biggest one-day percentage decline since October 8, 2024. BYD's Hong Kong-listed shares rose 4.5% to reach a record high before trimming gains and were last up 0.4%.
BYD on Monday put on sale 21 models equipped with its "God's Eye" advanced driver-assistance system (ADAS) similar to that offered by rival Tesla, for no additional cost. The cheapest model the Chinese electric vehicle giant is offering is the Seagull, priced at USD 9,555. BYD's move far undercuts rivals, and analysts said it could start a new price war in an already hyper-competitive market, comparing it to how Chinese artificial intelligence startup DeepSeek recently roiled the global AI sector with its low-price offering.
Also Read | <a href="https://www.wionews.com/autonews/xpeng-aims-for-breakthrough-in-ev-market-with-aggressive-growth-strategy-777795">Xpeng aims for breakthrough in EV market with aggressive growth strategy</a>
The "era of smart driving popularisation has come," Nomura analysts wrote in a note. BYD had previously only offered such features, which enable cars to navigate highway traffic autonomously under human driver supervision, in models priced from USD 30,000. Tesla has these features available in China in its EVs priced from USD 32,000. It charges USD 8,000 for its Full Self-Driving (FSD) driver assistant software in the United States, or USD 99 a month on a subscription basis. FSD is not yet available in China.
Xpeng declined to comment, instead referring to comments its founder He Xiaopeng made online on Monday, ahead of BYD's event. "We welcome the official upcoming announcement by a leading automaker I respect extremely for its smart driving strategy that will bring about the popularisation of smart driving not only in China but also globally," he said. John Zeng, head of market forecast for China at London-based consultancy GlobalData, said Xpeng and many of its peers were under tremendous pressure. "But it would be difficult for them to follow suit with similarly affordable ones," Zeng said.
Leapmotor, the Chinese partner of Stellantis, was the first Chinese automaker to respond, launching a new EV with smart driving technology priced under 150,000 yuan (USD 20,529.67) on Tuesday. Richard Yu, chairman of Huawei's intelligent car solutions unit, which has been pushing hard to become a top supplier of smart car technology in China, wrote on his personal Weibo account on Tuesday that "when it comes to smart driving, cobbling together usable features is completely different to it being safe and effective." He did not mention BYD.
China, the world's largest auto market, has already in the past three years been in the throngs of a vicious price war that has forced foreign automakers to restructure their operations and smaller startups to retreat. BYD has been a major driver of the trend with relentless discounting on its cars, including ones in its best-selling Dynasty and Ocean series of models, and its releases of new versions at a speed far faster than overseas brands. Smaller rivals have been trying to keep up. On Monday, Nio's founder William Li told a livestream that the EV maker plans to release new models every quarter starting in April.
&nbsp;

Autonews | China has already in the past three years been in the throngs of a vicious price war that has forced foreign automakers to restructure their operations.


Shares in Chinese automakers Xpeng and Geely Auto tumbled on Tuesday on worries they will struggle to compete against BYD's move to offer free smart driving features on almost all of its models. Xpeng's shares fell as much as 8.4% and Geely's dropped as much as 11.1%, both in the biggest one-day percentage decline since October 8, 2024. BYD's Hong Kong-listed shares rose 4.5% to reach a record high before trimming gains and were last up 0.4%. BYD on Monday put on sale 21 models equipped with its "God's Eye" advanced driver-assistance system (ADAS) similar to that offered by rival Tesla, for no additional cost. The cheapest model the Chinese electric vehicle giant is offering is the Seagull, priced at USD 9,555. BYD's move far undercuts rivals, and analysts said it could start a new price war in an already hyper-competitive market, comparing it to how Chinese artificial intelligence startup DeepSeek recently roiled the global AI sector with its low-price offering. Also Read | Xpeng aims for breakthrough in EV market with aggressive growth strategy The "era of smart driving popularisation has come," Nomura analysts wrote in a note. BYD had previously only offered such features, which enable cars to navigate highway traffic autonomously under human driver supervision, in models priced from USD 30,000. Tesla has these features available in China in its EVs priced from USD 32,000. It charges USD 8,000 for its Full Self-Driving (FSD) driver assistant software in the United States, or USD 99 a month on a subscription basis. FSD is not yet available in China. Xpeng declined to comment, instead referring to comments its founder He Xiaopeng made online on Monday, ahead of BYD's event. "We welcome the official upcoming announcement by a leading automaker I respect extremely for its smart driving strategy that will bring about the popularisation of smart driving not only in China but also globally," he said. John Zeng, head of market forecast for China at London-based consultancy GlobalData, said Xpeng and many of its peers were under tremendous pressure. "But it would be difficult for them to follow suit with similarly affordable ones," Zeng said. Leapmotor, the Chinese partner of Stellantis, was the first Chinese automaker to respond, launching a new EV with smart driving technology priced under 150,000 yuan (USD 20,529.67) on Tuesday. Richard Yu, chairman of Huawei's intelligent car solutions unit, which has been pushing hard to become a top supplier of smart car technology in China, wrote on his personal Weibo account on Tuesday that "when it comes to smart driving, cobbling together usable features is completely different to it being safe and effective." He did not mention BYD. China, the world's largest auto market, has already in the past three years been in the throngs of a vicious price war that has forced foreign automakers to restructure their operations and smaller startups to retreat. BYD has been a major driver of the trend with relentless discounting on its cars, including ones in its best-selling Dynasty and Ocean series of models, and its releases of new versions at a speed far faster than overseas brands. Smaller rivals have been trying to keep up. On Monday, Nio's founder William Li told a livestream that the EV maker plans to release new models every quarter starting in April.

Xpeng, Geely shares fall after BYD offers free smart driving features

Xpeng unveiled an increase in the second-quarter delivery forecast during trading on Tuesday, following the company’s price cut strategy to seize ground in the Chinese electric vehicle market. The positive outlook helped its US-listed shares to rise by 8% and its Philippine shares by 5%.

Company target of delivering 29,000 – 32,000 vehicles during the second quarter would be a leap of 25% to 37%. This increase in projected deliveries implies that other business strategies that are commonly used by organisations about promotions, lower charges, or heavy investments in key technologies like AI and self-driving automobiles are working efficiently.

Lots of discounts are expected in the first Xpeng G6 and G9 electric SUVs, thus boosting delivery in the short run but there is a string warning from Xiaomi. The tough competitive rivalry within the still-growing EV market came under discussion especially regarding the possible effects of Xiaomi’s SU8 on Xpeng’s SUV line. Rosalie Chen, an analyst at Third Bridge, spoke about the Xiaomi’s SU8 and its influence on the SUV series of Xpeng.

However, its performance and strategic growth direction do not seem to be a problem; it is the external environment that threatens the company’s growth on the international level. Recent globalisation muscles were provided by the European Commission’s initiation of an anti-subsidy probe and recent US tariffs hikes, which have compounded the company’s global expansion move. However, Xpeng is not dettered, and is planning to launch a series of new models, ranging from 100,000 yuan to 400,000 yuan within the next three years. Firstly, it is the electric sedan that will be launched in the fourth quarter of the current year.

Specifically, company officials revealed five international strategies including increasing sales in more than twenty countries by offering subsidies on electric vehicles under environmental conservation measures. Yet, the regulation psyche and the tariff hike reveal that Chinese electric vehicle manufacturers are not without risks when seeking to go global.

(with inputs from Reuters)

Xpeng unveiled an increase in the second-quarter delivery forecast during trading on Tuesday, following the company’s price cut strategy to seize ground in the Chinese electric vehicle market.

Xpeng unveiled an increase in the second-quarter delivery forecast during trading on Tuesday, following the company’s price cut strategy to seize ground in the Chinese electric vehicle market. The positive outlook helped its US-listed shares to rise by 8% and its Philippine shares by 5%. Company target of delivering 29,000 – 32,000 vehicles during the second quarter would be a leap of 25% to 37%. This increase in projected deliveries implies that other business strategies that are commonly used by organisations about promotions, lower charges, or heavy investments in key technologies like AI and self-driving automobiles are working efficiently. Lots of discounts are expected in the first Xpeng G6 and G9 electric SUVs, thus boosting delivery in the short run but there is a string warning from Xiaomi. The tough competitive rivalry within the still-growing EV market came under discussion especially regarding the possible effects of Xiaomi’s SU8 on Xpeng’s SUV line. Rosalie Chen, an analyst at Third Bridge, spoke about the Xiaomi’s SU8 and its influence on the SUV series of Xpeng. However, its performance and strategic growth direction do not seem to be a problem; it is the external environment that threatens the company’s growth on the international level. Recent globalisation muscles were provided by the European Commission’s initiation of an anti-subsidy probe and recent US tariffs hikes, which have compounded the company’s global expansion move. However, Xpeng is not dettered, and is planning to launch a series of new models, ranging from 100,000 yuan to 400,000 yuan within the next three years. Firstly, it is the electric sedan that will be launched in the fourth quarter of the current year. Specifically, company officials revealed five international strategies including increasing sales in more than twenty countries by offering subsidies on electric vehicles under environmental conservation measures. Yet, the regulation psyche and the tariff hike reveal that Chinese electric vehicle manufacturers are not without risks when seeking to go global. (with inputs from Reuters)

EV maker Xpeng sees higher quarterly deliveries as demand rises

<a href="https://www.wionews.com/india-news/rebalancing-needed-as-both-western-northern-fronts-require-equal-attention-says-army-chief-273613">China</a>&nbsp;will not make&nbsp;significant&nbsp;cuts to&nbsp;subsidies&nbsp;for&nbsp;new&nbsp;energy&nbsp;vehicles (NEV) this year, signalling that its policy will remain relatively stable, state media quoted the country's industry ministry as saying on Saturday.

Earlier, Miao Wei, China's minister for industry and information technology (MIIT), told a forum that the country would not cut subsidies for new energy vehicles (NEV) again in July, an approach which was cheered by vehicle makers.

The government-backed Beijing&nbsp;News said an MIIT representative, in response to Miao's statement, said that "this year's NEV subsidy policy will remain relatively stable and there will not be&nbsp;significant&nbsp;cuts".

<a href="https://www.wionews.com/world/tsai-sweeping-taiwan-elections-with-half-eligible-votes-counted-report-273630">Beijing</a> has been slowly rolling back a generous 5-year subsidy programme for NEVs, which began in 2016, saying it plans to phase out&nbsp;subsidies&nbsp;after&nbsp;2020, amid criticism that some firms have become overly reliant on the funds.

China's monthly NEV sales dropped for the first time in two years in July as the subsidy&nbsp;cuts reached a&nbsp;new&nbsp;level, and have continued falling since.

"There was a subsidy&nbsp;cut&nbsp;on July 1 last year and everyone has been concerned about whether we will see more&nbsp;cuts this year," Miao told the EV100 annual gathering of senior auto industry executives in Beijing.

"Today I can tell everyone, we will not&nbsp;cut&nbsp;it in July this year."

Miao's speech was the "best&nbsp;news", He Xiaopeng, chief executive of EV startup XPeng Motors, told reporters, adding that policy stability was crucial to the industry.

Miao also said NEV sales hit 163,000 units in December and full-year sales stood at 1.2 million NEVs, a drop from 1.3 million in 2018.

The&nbsp;<a href="https://www.wionews.com/world/china-auto-sales-fall-69-in-august-14th-month-of-decline-248990">China&nbsp;Association of Automobile Manufacturers</a> will announce 2019 full-year sales figures on Monday. Last month, it said that NEV sales from January to November hit 1.04 million.

Automakers who stand to benefit include <a href="https://www.wionews.com/business-economy/stripteasing-musk-launches-tesla-suv-programme-at-new-china-factory-272725">Tesla</a>, which started making deliveries from its $2-billion Shanghai plant this month and secured NEV&nbsp;subsidies&nbsp;in December, Warren Buffett-backed Chinese electric car maker BYD as well as aspiring Tesla-challenger Nio Inc.

China will not make significant cuts to subsidies for new energy vehicles (NEV) this year, signalling that its policy will remain relatively stable, state media quoted the country's industry ministry as saying on Saturday.

China will not make significant cuts to subsidies for new energy vehicles (NEV) this year, signalling that its policy will remain relatively stable, state media quoted the country's industry ministry as saying on Saturday. Earlier, Miao Wei, China's minister for industry and information technology (MIIT), told a forum that the country would not cut subsidies for new energy vehicles (NEV) again in July, an approach which was cheered by vehicle makers. The government-backed Beijing News said an MIIT representative, in response to Miao's statement, said that "this year's NEV subsidy policy will remain relatively stable and there will not be significant cuts". Beijing has been slowly rolling back a generous 5-year subsidy programme for NEVs, which began in 2016, saying it plans to phase out subsidies after 2020, amid criticism that some firms have become overly reliant on the funds. China's monthly NEV sales dropped for the first time in two years in July as the subsidy cuts reached a new level, and have continued falling since. "There was a subsidy cut on July 1 last year and everyone has been concerned about whether we will see more cuts this year," Miao told the EV100 annual gathering of senior auto industry executives in Beijing. "Today I can tell everyone, we will not cut it in July this year." Miao's speech was the "best news", He Xiaopeng, chief executive of EV startup XPeng Motors, told reporters, adding that policy stability was crucial to the industry. Miao also said NEV sales hit 163,000 units in December and full-year sales stood at 1.2 million NEVs, a drop from 1.3 million in 2018. The China Association of Automobile Manufacturers will announce 2019 full-year sales figures on Monday. Last month, it said that NEV sales from January to November hit 1.04 million. Automakers who stand to benefit include Tesla, which started making deliveries from its $2-billion Shanghai plant this month and secured NEV subsidies in December, Warren Buffett-backed Chinese electric car maker BYD as well as aspiring Tesla-challenger Nio Inc.

China's Miao Wei: No significant cut in 'New Energy Vehicle' subsidies in 2020

xpeng-motors

Xpeng Motors, News on Xpeng Motors, stories on Xpeng Motors, articles on Xpeng Motors, Xpeng Motors stories at Wion, Xpeng Motors news, Xpeng Motors latest news

xpeng motors

Xpeng, Geely shares fall after BYD offers free smart driving features

EV maker Xpeng sees higher quarterly deliveries as demand rises

China's Miao Wei: No significant cut in 'New Energy Vehicle' subsidies in 2020