From Italy's vineyards to Japan's care homes and China's high-tech labs, a new generation of AI robots is stepping into real-world jobs. 'Frasky' maps every grape, 'OpenArm' folds laundry with human-like dexterity, and XPeng's 'IRON' learns to move like a real person. Find out how these robots work, the tech behind them, and what their rise means for the future of human labour.

Humanoids Taking Over Real Jobs

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.
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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, the Chinese electric vehicle manufacturer, is positioning itself for a potential industry milestone, with President Brian Gu confidently projecting the company will reach break-even point towards the end of 2025. This ambitious goal could potentially make Xpeng the first Chinese automaker to achieve profitability primarily through pure electric vehicle sales.

In an interview, Gu described the current market environment as entering a "super cycle," highlighting the company's strategic initiatives to transform its financial trajectory. Unlike competitors BYD and Li Auto, which rely significantly on hybrid vehicle sales for profitability, Xpeng is committed to a pure electric vehicle approach.

The company's optimism stems from multiple strategic developments. Xpeng has forecast fourth-quarter revenue exceeding Wall Street expectations, attributed to the introduction of new models Mona 03 and P7+. The momentum is expected to continue through the fourth quarter and into 2025, bolstered by supportive government policies including subsidies of up to USD 2,800 for trading in older vehicles for electric or more fuel-efficient alternatives.

Expansion plans are equally ambitious. Xpeng intends to launch four new models next year and intensify international market penetration, strategically avoiding North America where Chinese EVs face prohibitive 100% tariffs. While European markets present challenges with potential tariffs exceeding 20%, Gu remains open to exploring innovative market entry strategies.

Technological innovation represents another critical component of Xpeng's growth strategy. The company has invested 3.5 billion yuan (approximately USD 483.07 million) in artificial intelligence development over the past four quarters, focusing on computing power and software advancement. Gu anticipates these investments will constitute a "large chunk" of future research and development expenditure.

Collaborative partnerships are emerging as a key differentiator for Xpeng. Technology services revenue nearly doubled in the third quarter, driven by a partnership with Volkswagen. The company is actively exploring opportunities to expand technological collaboration with the German automaker both within and outside China.

The artificial intelligence landscape is another area of strategic focus. Xpeng positions itself among Chinese developers of advanced assisted driving systems, developing proprietary large AI models comparable to Tesla's Full-Self Driving technology, which is expected to launch in China during the first quarter of 2025.

Gu revealed ongoing discussions with "dozens" of automotive industry players regarding smart driving collaborations, signalling the company's commitment to technological innovation and strategic partnerships.

The company's approach reflects a broader transformation in the global automotive industry, where electric vehicle manufacturers are increasingly differentiating themselves through technological innovation, strategic partnerships, and aggressive market expansion strategies.

Xpeng, the Chinese electric vehicle manufacturer, is positioning itself for a potential industry milestone, with President Brian Gu confidently projecting the company will reach break-even point towards the end of 2025.

Xpeng, the Chinese electric vehicle manufacturer, is positioning itself for a potential industry milestone, with President Brian Gu confidently projecting the company will reach break-even point towards the end of 2025. This ambitious goal could potentially make Xpeng the first Chinese automaker to achieve profitability primarily through pure electric vehicle sales. In an interview, Gu described the current market environment as entering a "super cycle," highlighting the company's strategic initiatives to transform its financial trajectory. Unlike competitors BYD and Li Auto, which rely significantly on hybrid vehicle sales for profitability, Xpeng is committed to a pure electric vehicle approach. The company's optimism stems from multiple strategic developments. Xpeng has forecast fourth-quarter revenue exceeding Wall Street expectations, attributed to the introduction of new models Mona 03 and P7+. The momentum is expected to continue through the fourth quarter and into 2025, bolstered by supportive government policies including subsidies of up to USD 2,800 for trading in older vehicles for electric or more fuel-efficient alternatives. Expansion plans are equally ambitious. Xpeng intends to launch four new models next year and intensify international market penetration, strategically avoiding North America where Chinese EVs face prohibitive 100% tariffs. While European markets present challenges with potential tariffs exceeding 20%, Gu remains open to exploring innovative market entry strategies. Technological innovation represents another critical component of Xpeng's growth strategy. The company has invested 3.5 billion yuan (approximately USD 483.07 million) in artificial intelligence development over the past four quarters, focusing on computing power and software advancement. Gu anticipates these investments will constitute a "large chunk" of future research and development expenditure. Collaborative partnerships are emerging as a key differentiator for Xpeng. Technology services revenue nearly doubled in the third quarter, driven by a partnership with Volkswagen. The company is actively exploring opportunities to expand technological collaboration with the German automaker both within and outside China. The artificial intelligence landscape is another area of strategic focus. Xpeng positions itself among Chinese developers of advanced assisted driving systems, developing proprietary large AI models comparable to Tesla's Full-Self Driving technology, which is expected to launch in China during the first quarter of 2025. Gu revealed ongoing discussions with "dozens" of automotive industry players regarding smart driving collaborations, signalling the company's commitment to technological innovation and strategic partnerships. The company's approach reflects a broader transformation in the global automotive industry, where electric vehicle manufacturers are increasingly differentiating themselves through technological innovation, strategic partnerships, and aggressive market expansion strategies.

Xpeng aims for breakthrough in EV market with aggressive growth strategy

XPeng, the Chinese electric vehicle manufacturer, has signalled a promising fourth quarter, forecasting revenue that surpasses Wall Street expectations and demonstrating renewed momentum in China's competitive automotive landscape.

The company's optimistic outlook is underpinned by several strategic developments, most notably the successful launch of its MONA M03 mid-sized sedan and the recent unveiling of the AI-integrated P7+ executive sedan. These product initiatives have positioned XPeng to challenge established players like BYD, Nio, and Tesla in the increasingly dynamic Chinese electric vehicle market.

The MONA M03, which has consistently delivered over 10,000 units for two consecutive months in October, represents a critical component of XPeng's market expansion strategy. Positioned competitively against BYD's Seagull and Dolphin models, and targeting the Tesla Model 3 segment, the vehicle has demonstrated significant market appeal.

XPeng's financial projections reflect this strategic momentum. The company anticipates fourth-quarter revenue between 15.3 billion and 16.2 billion yuan, substantially exceeding analysts' average estimate of 14.77 billion yuan. This forecast arrives against the backdrop of China's automotive market showing signs of recovery, with passenger vehicle sales rising for a second consecutive month in October.

The launch of the P7+ executive sedan marks a particularly notable milestone for XPeng. As the company's first vehicle incorporating large AI models trained on extensive datasets, the P7+ generated substantial market interest, accumulating over 31,000 non-refundable orders within just three hours of its release. Analysts at Jefferies view this as a pivotal moment in XPeng's product line revitalization efforts.

Delivery expectations further underscore the company's confidence. XPeng projects delivering between 87,000 and 91,000 vehicles in the fourth quarter, representing a remarkable year-on-year growth of 44.6% to 51.3%. This follows the third quarter's performance, where the company delivered 46,533 vehicles, a 16.3% increase from the previous year.

Financially, XPeng's third-quarter revenue of 10.10 billion yuan exceeded analyst estimates of 9.77 billion yuan. However, the company reported a loss of 1.90 yuan per American Depositary Receipt (ADR), slightly higher than the anticipated loss of 1.71 yuan per ADR.

The company's stock market performance reflects investor optimism, with U.S.-listed shares rising 5.1% in premarket trading following the revenue forecast announcement.

XPeng's strategic approach highlights the broader transformations occurring in China's electric vehicle sector. By integrating advanced AI technologies, expanding product lines, and responding dynamically to market demands, the company is positioning itself as a significant contender in the global electric vehicle revolution.

The automotive industry's increasing convergence with artificial intelligence and smart technologies is epitomised by XPeng's latest offerings. The P7+'s integration of large AI models signals a broader trend towards more intelligent, data-driven vehicle experiences.

XPeng, the Chinese electric vehicle manufacturer, has signalled a promising fourth quarter, forecasting revenue that surpasses Wall Street expectations and demonstrating renewed momentum in China's competitive automotive landscape.

XPeng, the Chinese electric vehicle manufacturer, has signalled a promising fourth quarter, forecasting revenue that surpasses Wall Street expectations and demonstrating renewed momentum in China's competitive automotive landscape. The company's optimistic outlook is underpinned by several strategic developments, most notably the successful launch of its MONA M03 mid-sized sedan and the recent unveiling of the AI-integrated P7+ executive sedan. These product initiatives have positioned XPeng to challenge established players like BYD, Nio, and Tesla in the increasingly dynamic Chinese electric vehicle market. The MONA M03, which has consistently delivered over 10,000 units for two consecutive months in October, represents a critical component of XPeng's market expansion strategy. Positioned competitively against BYD's Seagull and Dolphin models, and targeting the Tesla Model 3 segment, the vehicle has demonstrated significant market appeal. XPeng's financial projections reflect this strategic momentum. The company anticipates fourth-quarter revenue between 15.3 billion and 16.2 billion yuan, substantially exceeding analysts' average estimate of 14.77 billion yuan. This forecast arrives against the backdrop of China's automotive market showing signs of recovery, with passenger vehicle sales rising for a second consecutive month in October. The launch of the P7+ executive sedan marks a particularly notable milestone for XPeng. As the company's first vehicle incorporating large AI models trained on extensive datasets, the P7+ generated substantial market interest, accumulating over 31,000 non-refundable orders within just three hours of its release. Analysts at Jefferies view this as a pivotal moment in XPeng's product line revitalization efforts. Delivery expectations further underscore the company's confidence. XPeng projects delivering between 87,000 and 91,000 vehicles in the fourth quarter, representing a remarkable year-on-year growth of 44.6% to 51.3%. This follows the third quarter's performance, where the company delivered 46,533 vehicles, a 16.3% increase from the previous year. Financially, XPeng's third-quarter revenue of 10.10 billion yuan exceeded analyst estimates of 9.77 billion yuan. However, the company reported a loss of 1.90 yuan per American Depositary Receipt (ADR), slightly higher than the anticipated loss of 1.71 yuan per ADR. The company's stock market performance reflects investor optimism, with U.S.-listed shares rising 5.1% in premarket trading following the revenue forecast announcement. XPeng's strategic approach highlights the broader transformations occurring in China's electric vehicle sector. By integrating advanced AI technologies, expanding product lines, and responding dynamically to market demands, the company is positioning itself as a significant contender in the global electric vehicle revolution. The automotive industry's increasing convergence with artificial intelligence and smart technologies is epitomised by XPeng's latest offerings. The P7+'s integration of large AI models signals a broader trend towards more intelligent, data-driven vehicle experiences.

XPeng forecasts a surge in revenue

The flying car developed by Chinese electric vehicle maker XPENG, completed its first public flight Tuesday at the 15th China International Aviation and Aerospace Exhibition, also known as Airshow China.

XPENG's Flying Car Makes First Flight at Airshow China 2024

Chinese electric vehicle (EV) manufacturer Xpeng has made a bold move into the mainstream automotive market with the launch of its budget sub-brand MONA. On Tuesday, the company announced pricing for its first MONA model, the M03 electric hatchback coupe, starting at an attractive 119,800 yuan (USD 16,813), positioning it squarely in one of China's most competitive and fastest-growing market segments.

The introduction of the MONA M03 marks Xpeng's strategic push into the 100,000-150,000 yuan (USD 14,035- USD 21,052) price range, a crucial segment that accounts for approximately one-third of total car sales in China. This move is seen as a significant step for Xpeng, as it aims to broaden its customer base and challenge both domestic and international rivals in the world's largest automotive market.

Xpeng is offering two versions of the MONA M03. The entry-level model, priced from 119,800 yuan (USD 16,813), comes without advanced autonomous driving features. For consumers seeking cutting-edge technology, the M03 Max variant, starting at 155,800 yuan (USD 21,866), incorporates Tesla-like autonomous driving capabilities. Notably, both versions undercut the price of Xpeng's previously most affordable offering, the P5 sedan, which starts at around 157,900 yuan (USD 22,000).

During a launch event in Beijing, which coincided with Xpeng's 10th-anniversary celebrations, company co-founder and CEO He Xiaopeng highlighted the M03 Max as "the only car with advanced autonomous driving at less than 200,000 yuan (USD 28,068)." He announced that deliveries of the M03 Max are scheduled to commence in early 2025, setting the stage for an intensified competition in the affordable smart EV segment.

The MONA brand is the result of Xpeng's acquisition of the electric vehicle development unit from Didi Global, a Chinese ride-hailing giant that has recently scaled back its EV ambitions due to fierce market competition. Through MONA, Xpeng aims to achieve greater economies of scale, potentially paving the way to profitability. The company has set an ambitious target of selling at least 100,000 MONA vehicles annually.

Xpeng's financial outlook has shown signs of improvement in recent months. The company reported a 20% increase in EV sales during the first seven months of the year compared to the same period last year. Additionally, Xpeng has bolstered its revenue streams by providing technology services to automotive giant Volkswagen, contributing to an enhanced gross profit margin.

The launch of MONA aligns with similar strategies employed by Xpeng's domestic competitors. NIO, another prominent Chinese EV manufacturer, introduced its own lower-priced brand, Onvo, in April. The Onvo L60, set to hit the market in September, is positioned to compete directly with Tesla's popular Model Y in China.

In a notable departure from some of their previous models, both the MONA and Onvo EVs have opted not to include lidar sensors in their advanced autonomous driving systems. This approach mirrors Tesla's camera-only Full-Self Driving technology, allowing for significant cost reductions in hardware. While lidar sensor prices have decreased substantially over the past two years, thanks to increased production by Chinese manufacturers like Hesai Technology, they still represent a considerable expense in vehicle production.

Interestingly, Xpeng had previously been at the forefront of lidar integration in mass-produced vehicles. In 2021, the company launched the P5, touted as the world's first mass-produced car with optional lidar sensors. However, in a strategic shift last September, Xpeng removed the lidar option from the P5 to reduce its starting price to 157,900 yuan (USD 22,000), aiming to appeal to more price-conscious consumers. Currently, Xpeng vehicles equipped with lidar sensors are available from 224,900 yuan (USD 31,450).

Chinese electric vehicle (EV) manufacturer Xpeng has made a bold move into the mainstream automotive market with the launch of its budget sub-brand MONA. On Tuesday, the company announced pricing for its first MONA model, the M03 electric hatchback coupe, starting at an attractive 119,800 yuan (USD 16,813), positioning it squarely in one of China's most competitive and fastest-growing market segments.

Chinese electric vehicle (EV) manufacturer Xpeng has made a bold move into the mainstream automotive market with the launch of its budget sub-brand MONA. On Tuesday, the company announced pricing for its first MONA model, the M03 electric hatchback coupe, starting at an attractive 119,800 yuan (USD 16,813), positioning it squarely in one of China's most competitive and fastest-growing market segments. The introduction of the MONA M03 marks Xpeng's strategic push into the 100,000-150,000 yuan (USD 14,035- USD 21,052) price range, a crucial segment that accounts for approximately one-third of total car sales in China. This move is seen as a significant step for Xpeng, as it aims to broaden its customer base and challenge both domestic and international rivals in the world's largest automotive market. Xpeng is offering two versions of the MONA M03. The entry-level model, priced from 119,800 yuan (USD 16,813), comes without advanced autonomous driving features. For consumers seeking cutting-edge technology, the M03 Max variant, starting at 155,800 yuan (USD 21,866), incorporates Tesla-like autonomous driving capabilities. Notably, both versions undercut the price of Xpeng's previously most affordable offering, the P5 sedan, which starts at around 157,900 yuan (USD 22,000). During a launch event in Beijing, which coincided with Xpeng's 10th-anniversary celebrations, company co-founder and CEO He Xiaopeng highlighted the M03 Max as "the only car with advanced autonomous driving at less than 200,000 yuan (USD 28,068)." He announced that deliveries of the M03 Max are scheduled to commence in early 2025, setting the stage for an intensified competition in the affordable smart EV segment. The MONA brand is the result of Xpeng's acquisition of the electric vehicle development unit from Didi Global, a Chinese ride-hailing giant that has recently scaled back its EV ambitions due to fierce market competition. Through MONA, Xpeng aims to achieve greater economies of scale, potentially paving the way to profitability. The company has set an ambitious target of selling at least 100,000 MONA vehicles annually. Xpeng's financial outlook has shown signs of improvement in recent months. The company reported a 20% increase in EV sales during the first seven months of the year compared to the same period last year. Additionally, Xpeng has bolstered its revenue streams by providing technology services to automotive giant Volkswagen, contributing to an enhanced gross profit margin. The launch of MONA aligns with similar strategies employed by Xpeng's domestic competitors. NIO, another prominent Chinese EV manufacturer, introduced its own lower-priced brand, Onvo, in April. The Onvo L60, set to hit the market in September, is positioned to compete directly with Tesla's popular Model Y in China. In a notable departure from some of their previous models, both the MONA and Onvo EVs have opted not to include lidar sensors in their advanced autonomous driving systems. This approach mirrors Tesla's camera-only Full-Self Driving technology, allowing for significant cost reductions in hardware. While lidar sensor prices have decreased substantially over the past two years, thanks to increased production by Chinese manufacturers like Hesai Technology, they still represent a considerable expense in vehicle production. Interestingly, Xpeng had previously been at the forefront of lidar integration in mass-produced vehicles. In 2021, the company launched the P5, touted as the world's first mass-produced car with optional lidar sensors. However, in a strategic shift last September, Xpeng removed the lidar option from the P5 to reduce its starting price to 157,900 yuan (USD 22,000), aiming to appeal to more price-conscious consumers. Currently, Xpeng vehicles equipped with lidar sensors are available from 224,900 yuan (USD 31,450).

Xpeng unveils affordable EV line to capture larger market share in China

Chinese electric vehicle (EV) manufacturer XPeng has reported weaker-than-expected performance for the second quarter of 2023, signalling significant challenges ahead. The company’s revenue for the June quarter was slightly below analysts’ expectations, and its third-quarter revenue forecast also failed to meet market predictions. As XPeng grapples with a decline in demand and increasing competition in the EV market, it faces the pressing need to revitalise its product lineup and address external pressures, such as impending European tariffs.

Stiff Competition and Ageing Lineup

XPeng's June-quarter sales fell short of estimates, primarily due to the intense competition from domestic rivals such as BYD and Nio, as well as global players like Tesla. The company’s current lineup, which has been showing signs of age, struggled to attract new buyers, resulting in weaker sales figures. XPeng’s Hong Kong-listed shares reflected this downturn, dropping 2.7% on Wednesday following the announcement.

The company’s vehicle deliveries are expected to see a marginal year-over-year increase in the third quarter, with projections ranging between 41,000 and 45,000 units. While this is a slight improvement from the 40,008 vehicles delivered in the same period last year, it is far from the robust growth that investors were hoping for.

Strategic Model Refresh

In response to its faltering sales, XPeng has outlined an ambitious plan to rejuvenate its lineup over the next three years. The company aims to introduce a series of new electric vehicles, priced between 100,000 yuan and 400,000 yuan ($14,001.88 - $56,007.51), in an effort to regain market share. This strategy is aimed at challenging competitors such as BYD’s Seagull and Dolphin models, as well as Tesla’s Model 3.

One of the key launches in this strategy is the upcoming MONA M03, a mid-sized sedan expected to debut this month. This model is anticipated to be a crucial player in XPeng's bid to revitalise its market presence and compete more effectively against both domestic and international rivals.

European Tariff Challenges

Adding to XPeng’s woes is the European Commission’s decision to impose tariffs on Chinese-made electric vehicles, a move intended to prevent an influx of EVs benefiting from Chinese state subsidies. This has thrown a wrench into XPeng’s plans for expanding into the European market. The company is now considering establishing a manufacturing plant within the European Union to circumvent these tariffs, a move that could significantly alter its global strategy.

Financial Performance and Market Outlook

Despite the challenges, XPeng’s vehicle margin improved slightly in the second quarter, rising to 6.4% from 5.5% in the previous quarter. This indicates some level of operational efficiency, though it is still far from what the company needs to regain investor confidence.

XPeng’s revenue for the April-June period stood at 8.11 billion yuan ($1.14 billion), aligning with the company’s forecast of 7.5 billion to 8.3 billion yuan. However, this figure fell short of the analysts' average estimate of 8.17 billion yuan, highlighting the company's struggle to meet market expectations.

Looking ahead, XPeng has forecasted third-quarter revenue between 9.1 billion yuan and 9.8 billion yuan, again falling short of analysts’ estimates, which stood at 10.4 billion yuan. This cautious outlook suggests that XPeng remains wary of the current market conditions and the impact of its ageing lineup on future sales.

The Road Ahead

XPeng finds itself at a critical juncture. The company’s ability to navigate the challenges posed by stiff competition, an ageing product lineup, and external pressures like European tariffs will determine its future in the rapidly evolving EV market. While the planned model refresh and potential European manufacturing presence offer a glimmer of hope, the path ahead remains fraught with uncertainty. XPeng's leadership will need to execute its strategy with precision to avoid further setbacks and regain its footing in the global EV race.

(Inputs from Reuters)

Chinese electric vehicle (EV) manufacturer XPeng has reported weaker-than-expected performance for the second quarter of 2023, signalling significant challenges ahead.

Chinese electric vehicle (EV) manufacturer XPeng has reported weaker-than-expected performance for the second quarter of 2023, signalling significant challenges ahead. The company’s revenue for the June quarter was slightly below analysts’ expectations, and its third-quarter revenue forecast also failed to meet market predictions. As XPeng grapples with a decline in demand and increasing competition in the EV market, it faces the pressing need to revitalise its product lineup and address external pressures, such as impending European tariffs. Stiff Competition and Ageing Lineup XPeng's June-quarter sales fell short of estimates, primarily due to the intense competition from domestic rivals such as BYD and Nio, as well as global players like Tesla. The company’s current lineup, which has been showing signs of age, struggled to attract new buyers, resulting in weaker sales figures. XPeng’s Hong Kong-listed shares reflected this downturn, dropping 2.7% on Wednesday following the announcement. The company’s vehicle deliveries are expected to see a marginal year-over-year increase in the third quarter, with projections ranging between 41,000 and 45,000 units. While this is a slight improvement from the 40,008 vehicles delivered in the same period last year, it is far from the robust growth that investors were hoping for. Strategic Model Refresh In response to its faltering sales, XPeng has outlined an ambitious plan to rejuvenate its lineup over the next three years. The company aims to introduce a series of new electric vehicles, priced between 100,000 yuan and 400,000 yuan ($14,001.88 - $56,007.51), in an effort to regain market share. This strategy is aimed at challenging competitors such as BYD’s Seagull and Dolphin models, as well as Tesla’s Model 3. One of the key launches in this strategy is the upcoming MONA M03, a mid-sized sedan expected to debut this month. This model is anticipated to be a crucial player in XPeng's bid to revitalise its market presence and compete more effectively against both domestic and international rivals. European Tariff Challenges Adding to XPeng’s woes is the European Commission’s decision to impose tariffs on Chinese-made electric vehicles, a move intended to prevent an influx of EVs benefiting from Chinese state subsidies. This has thrown a wrench into XPeng’s plans for expanding into the European market. The company is now considering establishing a manufacturing plant within the European Union to circumvent these tariffs, a move that could significantly alter its global strategy. Financial Performance and Market Outlook Despite the challenges, XPeng’s vehicle margin improved slightly in the second quarter, rising to 6.4% from 5.5% in the previous quarter. This indicates some level of operational efficiency, though it is still far from what the company needs to regain investor confidence. XPeng’s revenue for the April-June period stood at 8.11 billion yuan ($1.14 billion), aligning with the company’s forecast of 7.5 billion to 8.3 billion yuan. However, this figure fell short of the analysts' average estimate of 8.17 billion yuan, highlighting the company's struggle to meet market expectations. Looking ahead, XPeng has forecasted third-quarter revenue between 9.1 billion yuan and 9.8 billion yuan, again falling short of analysts’ estimates, which stood at 10.4 billion yuan. This cautious outlook suggests that XPeng remains wary of the current market conditions and the impact of its ageing lineup on future sales. The Road Ahead XPeng finds itself at a critical juncture. The company’s ability to navigate the challenges posed by stiff competition, an ageing product lineup, and external pressures like European tariffs will determine its future in the rapidly evolving EV market. While the planned model refresh and potential European manufacturing presence offer a glimmer of hope, the path ahead remains fraught with uncertainty. XPeng's leadership will need to execute its strategy with precision to avoid further setbacks and regain its footing in the global EV race. (Inputs from Reuters)

XPeng struggles amid intense EV competition and European tariff threats

Chinese electric vehicle manufacturer Xpeng has taken a significant step forward in its partnership with German automotive giant Volkswagen AG. The two companies have announced the creation of specialized project houses dedicated to housing engineers from both organizations. These collaborative spaces, set to be established in the Chinese cities of Guangzhou and Hefei, are designed to serve as hubs of innovation and cooperation.

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The primary objective of these project houses is to accelerate the development process of a new electric vehicle architecture. This architecture encompasses the intricate configuration of electronic components, modules, and networks within a vehicle, forming the backbone of modern electric automobiles. By bringing together the expertise of both Xpeng and Volkswagen engineers under one roof, the companies aim to streamline their collaborative efforts and expedite the development timeline.

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The ambitious goal set by the two automakers is to commence production of vehicles utilizing this jointly developed architecture within a mere two years. This rapid timeline underscores the urgency and importance both companies place on advancing their electric vehicle technology and market presence.

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Ralf Brandstätter, a member of the board of management of Volkswagen AG for China, emphasized the significance of this collaboration by stating, "From 2026, all-electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture." This declaration highlights Volkswagen's commitment to integrating the fruits of this partnership across its entire electric vehicle lineup in the Chinese market, which is crucial given China's position as the world's largest automotive market.

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The establishment of these project houses is a key component of a broader agreement between Xpeng and Volkswagen. This partnership aims to leverage Volkswagen's new architecture for intelligent and electric cars to produce more affordable electric vehicles in China, which remains Volkswagen's most significant market globally.

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The collaboration between Xpeng and Volkswagen was initially forged in the previous year when Volkswagen made a substantial investment in the Chinese EV maker. The German automaker acquired a 4.99 per cent&nbsp;stake in Xpeng for approximately USD&nbsp;700 million. As part of this strategic alliance, the two companies have set forth plans to jointly launch two Volkswagen-branded electric vehicle models by 2026.

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This partnership represents a fusion of Xpeng's expertise in the Chinese electric vehicle market and cutting-edge technology with Volkswagen's global automotive experience and brand power. By combining their strengths, both companies are positioning themselves to capitalize on the rapidly growing electric vehicle sector in China and potentially beyond.

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The creation of these project houses signifies a tangible step towards realizing the ambitious goals set forth by this partnership. It demonstrates a commitment to hands-on collaboration and innovation, potentially setting a new standard for international automotive partnerships in the electric vehicle era.

Chinese electric vehicle manufacturer Xpeng has taken a significant step forward in its partnership with German automotive giant Volkswagen AG. The two companies have announced the creation of specialized project houses dedicated to housing engineers from both organizations.

Chinese electric vehicle manufacturer Xpeng has taken a significant step forward in its partnership with German automotive giant Volkswagen AG. The two companies have announced the creation of specialized project houses dedicated to housing engineers from both organizations. These collaborative spaces, set to be established in the Chinese cities of Guangzhou and Hefei, are designed to serve as hubs of innovation and cooperation. The primary objective of these project houses is to accelerate the development process of a new electric vehicle architecture. This architecture encompasses the intricate configuration of electronic components, modules, and networks within a vehicle, forming the backbone of modern electric automobiles. By bringing together the expertise of both Xpeng and Volkswagen engineers under one roof, the companies aim to streamline their collaborative efforts and expedite the development timeline. The ambitious goal set by the two automakers is to commence production of vehicles utilizing this jointly developed architecture within a mere two years. This rapid timeline underscores the urgency and importance both companies place on advancing their electric vehicle technology and market presence. Ralf Brandstätter, a member of the board of management of Volkswagen AG for China, emphasized the significance of this collaboration by stating, "From 2026, all-electric vehicles of the Volkswagen brand in China will be equipped with this very powerful and efficient architecture." This declaration highlights Volkswagen's commitment to integrating the fruits of this partnership across its entire electric vehicle lineup in the Chinese market, which is crucial given China's position as the world's largest automotive market. The establishment of these project houses is a key component of a broader agreement between Xpeng and Volkswagen. This partnership aims to leverage Volkswagen's new architecture for intelligent and electric cars to produce more affordable electric vehicles in China, which remains Volkswagen's most significant market globally. The collaboration between Xpeng and Volkswagen was initially forged in the previous year when Volkswagen made a substantial investment in the Chinese EV maker. The German automaker acquired a 4.99 per cent stake in Xpeng for approximately USD 700 million. As part of this strategic alliance, the two companies have set forth plans to jointly launch two Volkswagen-branded electric vehicle models by 2026. This partnership represents a fusion of Xpeng's expertise in the Chinese electric vehicle market and cutting-edge technology with Volkswagen's global automotive experience and brand power. By combining their strengths, both companies are positioning themselves to capitalize on the rapidly growing electric vehicle sector in China and potentially beyond. The creation of these project houses signifies a tangible step towards realizing the ambitious goals set forth by this partnership. It demonstrates a commitment to hands-on collaboration and innovation, potentially setting a new standard for international automotive partnerships in the electric vehicle era.

Volkswagen with Xpeng to develop new EV architecture with project house initiative

Chinese electric vehicle manufacturers Nio and XPeng have reaffirmed their commitment to the European market, despite the recent imposition of tariffs by the European Union on Chinese-made electric vehicles (EVs). This development was reported by AFP on Thursday, highlighting the resilience of these companies in the face of new trade challenges.

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The European Union has implemented provisional duties of up to 38 per cent on imported EVs from China, citing what they describe as "unfair" state subsidies. This move comes despite warnings from Beijing that such action could potentially trigger a trade war between the two economic powerhouses. The decision reflects growing concerns within the EU about the competitive advantage enjoyed by Chinese EV manufacturers, which are seen as benefiting from significant government support.

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XPeng, a Chinese EV company known for its stylish and innovative designs, has explicitly stated its intention to maintain its presence in the European market, undeterred by the new tariffs. A representative from XPeng told AFP, "As a company with a global vision, XPeng will not change its strategy of exploring overseas markets. We will find ways to minimise the impact on consumers." This statement underscores the company's determination to adapt to the changing regulatory landscape while continuing to serve European customers.

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Similarly, Nio, another prominent Chinese EV manufacturer that specialises in high-end models, has expressed its ongoing commitment to the European market. The company informed AFP that it is "closely monitoring" the EU's decision regarding the tariffs. Nio's spokesperson elaborated on their current stance, stating, "At this stage, Nio maintains the pricing of their current models in its European markets.

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However, it cannot be ruled out that prices may be adjusted at a later stage as a result of these tariffs being imposed." This approach suggests a cautious strategy, with the company keeping its options open while assessing the full impact of the new duties.

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Nio further emphasized its dedication to its European operations, declaring that it remains "fully committed to the European market." The company also expressed hope for a diplomatic resolution to the trade dispute, adding, "We hope to reach a resolution with the EU before definitive measures are enforced in November 2024." This statement indicates Nio's optimism that ongoing negotiations between China and the EU might lead to a more favourable outcome for Chinese EV manufacturers.

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The implementation of these tariffs is set to begin immediately, with the provisional duties taking effect from Friday. However, the EU has planned for definitive duties to be enforced in November, which would remain in place for five years. This long-term measure is subject to approval by the EU's 27 member states, suggesting that there may still be room for diplomatic manoeuvring and potential adjustments to the tariff structure.

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The situation highlights the complex interplay between international trade policies, industrial strategy, and the rapidly evolving global EV market. As Chinese manufacturers like Nio and XPeng continue to expand their presence in Europe, they face not only competitive challenges from established automakers but also regulatory hurdles that could significantly impact their business models and market positioning.

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The responses from Nio and XPeng demonstrate the resilience and adaptability of these companies in the face of changing market conditions. Their commitment to the European market, despite the new tariffs, suggests a long-term strategic view that prioritises global expansion and brand establishment over short-term financial considerations. As the situation continues to develop, it will be crucial to monitor how these companies navigate the new regulatory landscape and whether their strategies prove successful in maintaining and growing their European market share.

Chinese electric vehicle manufacturers Nio and XPeng have reaffirmed their commitment to the European market, despite the recent imposition of tariffs by the European Union on Chinese-made electric vehicles (EVs).

Chinese electric vehicle manufacturers Nio and XPeng have reaffirmed their commitment to the European market, despite the recent imposition of tariffs by the European Union on Chinese-made electric vehicles (EVs). This development was reported by AFP on Thursday, highlighting the resilience of these companies in the face of new trade challenges. The European Union has implemented provisional duties of up to 38 per cent on imported EVs from China, citing what they describe as "unfair" state subsidies. This move comes despite warnings from Beijing that such action could potentially trigger a trade war between the two economic powerhouses. The decision reflects growing concerns within the EU about the competitive advantage enjoyed by Chinese EV manufacturers, which are seen as benefiting from significant government support. XPeng, a Chinese EV company known for its stylish and innovative designs, has explicitly stated its intention to maintain its presence in the European market, undeterred by the new tariffs. A representative from XPeng told AFP, "As a company with a global vision, XPeng will not change its strategy of exploring overseas markets. We will find ways to minimise the impact on consumers." This statement underscores the company's determination to adapt to the changing regulatory landscape while continuing to serve European customers. Similarly, Nio, another prominent Chinese EV manufacturer that specialises in high-end models, has expressed its ongoing commitment to the European market. The company informed AFP that it is "closely monitoring" the EU's decision regarding the tariffs. Nio's spokesperson elaborated on their current stance, stating, "At this stage, Nio maintains the pricing of their current models in its European markets. However, it cannot be ruled out that prices may be adjusted at a later stage as a result of these tariffs being imposed." This approach suggests a cautious strategy, with the company keeping its options open while assessing the full impact of the new duties. Nio further emphasized its dedication to its European operations, declaring that it remains "fully committed to the European market." The company also expressed hope for a diplomatic resolution to the trade dispute, adding, "We hope to reach a resolution with the EU before definitive measures are enforced in November 2024." This statement indicates Nio's optimism that ongoing negotiations between China and the EU might lead to a more favourable outcome for Chinese EV manufacturers. The implementation of these tariffs is set to begin immediately, with the provisional duties taking effect from Friday. However, the EU has planned for definitive duties to be enforced in November, which would remain in place for five years. This long-term measure is subject to approval by the EU's 27 member states, suggesting that there may still be room for diplomatic manoeuvring and potential adjustments to the tariff structure. The situation highlights the complex interplay between international trade policies, industrial strategy, and the rapidly evolving global EV market. As Chinese manufacturers like Nio and XPeng continue to expand their presence in Europe, they face not only competitive challenges from established automakers but also regulatory hurdles that could significantly impact their business models and market positioning. The responses from Nio and XPeng demonstrate the resilience and adaptability of these companies in the face of changing market conditions. Their commitment to the European market, despite the new tariffs, suggests a long-term strategic view that prioritises global expansion and brand establishment over short-term financial considerations. As the situation continues to develop, it will be crucial to monitor how these companies navigate the new regulatory landscape and whether their strategies prove successful in maintaining and growing their European market share.

EV makers Nio, XPeng commit to EU market despite tariffs

On Friday, electric vehicle (EV) company Xpeng, based in China, voiced its opposition to new US tariffs on Chinese EVs, arguing they hinder global efforts towards carbon neutrality and clean energy adoption.

"These tariffs will lead to price increases," stated Xpeng co-president Brian Gu during a media event in Hong Kong, where the company introduced two new EV models. "While this doesn't currently impact Xpeng directly, for the broader market, I believe greater openness allowing global competition is beneficial in the long run," Gu added.

Currently, Chinese-made light-duty vehicles have a limited presence in the US import market.

Gu's comments came during the Hong Kong launch of Xpeng's G6 electric SUV and X9 flagship seven-seater. This expansion reflects the company's strategy to venture beyond China's saturated car market.

A price war and slowing demand within China are pressuring Chinese automakers, prompting them to accelerate overseas expansion to mitigate these challenges.

Other Chinese EV companies, such as BYD and Great Wall Motor, are already established in Hong Kong. According to consultancy CBRE, the number of Chinese-made EV models sold in Hong Kong has grown significantly, from just one in 2018 to 20 in 2023. This highlights the strong growth potential in this Asian financial hub.

However, this overseas expansion faces headwinds. The European Union (EU) launched an anti-subsidy investigation into Chinese EV imports, while the US recently announced tariff hikes.

"We're evaluating the impact of potential tariff changes in different regions to determine the flexibility we have in our profit margins," Gu said. He added that the company is still assessing the level of EU tariffs that might necessitate production relocation outside of China.

Xpeng currently sells EVs in several European countries, including the Netherlands, Norway, and Germany. The company also plans to enter additional European markets like Italy and the UK. Despite the looming tariffs, Xpeng recently announced its entry into the French market.

Highlighting the intense competition within China, Nio launched the first vehicle under its new budget-friendly brand, Onvo, aiming to compete with Tesla's Model Y.

Volkswagen-backed Xpeng anticipates its upcoming Mona-branded EV to be the first car in China priced under USD 21,000 with advanced self-driving features.

On Friday, electric vehicle (EV) company Xpeng, based in China, voiced its opposition to new US tariffs on Chinese EVs, arguing they hinder global efforts towards carbon neutrality and clean energy adoption.

On Friday, electric vehicle (EV) company Xpeng, based in China, voiced its opposition to new US tariffs on Chinese EVs, arguing they hinder global efforts towards carbon neutrality and clean energy adoption. "These tariffs will lead to price increases," stated Xpeng co-president Brian Gu during a media event in Hong Kong, where the company introduced two new EV models. "While this doesn't currently impact Xpeng directly, for the broader market, I believe greater openness allowing global competition is beneficial in the long run," Gu added. Currently, Chinese-made light-duty vehicles have a limited presence in the US import market. Gu's comments came during the Hong Kong launch of Xpeng's G6 electric SUV and X9 flagship seven-seater. This expansion reflects the company's strategy to venture beyond China's saturated car market. A price war and slowing demand within China are pressuring Chinese automakers, prompting them to accelerate overseas expansion to mitigate these challenges. Other Chinese EV companies, such as BYD and Great Wall Motor, are already established in Hong Kong. According to consultancy CBRE, the number of Chinese-made EV models sold in Hong Kong has grown significantly, from just one in 2018 to 20 in 2023. This highlights the strong growth potential in this Asian financial hub. However, this overseas expansion faces headwinds. The European Union (EU) launched an anti-subsidy investigation into Chinese EV imports, while the US recently announced tariff hikes. "We're evaluating the impact of potential tariff changes in different regions to determine the flexibility we have in our profit margins," Gu said. He added that the company is still assessing the level of EU tariffs that might necessitate production relocation outside of China. Xpeng currently sells EVs in several European countries, including the Netherlands, Norway, and Germany. The company also plans to enter additional European markets like Italy and the UK. Despite the looming tariffs, Xpeng recently announced its entry into the French market. Highlighting the intense competition within China, Nio launched the first vehicle under its new budget-friendly brand, Onvo, aiming to compete with Tesla's Model Y. Volkswagen-backed Xpeng anticipates its upcoming Mona-branded EV to be the first car in China priced under USD 21,000 with advanced self-driving features.

Price wars at home, tariffs abroad: Xpeng seek greener pastures

Chinese electric vehicle maker Xpeng Inc is the latest to announce a production shift to digital vehicle architecture. It is the same technology Tesla uses to make its cars.

China Xpeng to follow Tesla's Digi vehicle architecture

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