Category: eMobility

XPeng plans to launch right-hand drive model in Hong Kong next year, report says

Right-hand drive is a large segment of the overall EV market, and is determined to build itself into a strong global EV company, the South China Morning Post quoted XPeng's president as saying.

(Image credit: CnEVPost)

XPeng (NYSE: XPEV) is reportedly setting its sights on Hong Kong, after entering the European market.

Guangzhou-based XPeng plans to launch a right-hand drive model in Hong Kong next year to compete with well-established rivals like , the South China Morning Post said in a report yesterday.

XPeng would offer a vehicle distinct from existing EVs on the streets of Hong Kong that will appeal to local customers with its advanced technology and unique design, reinforcing its go-global strategy, the report quoted Brian Gu, vice chairman and president of the EV maker, as saying.

The XPeng right-hand drive model will probably hit the Hong Kong market in late 2024, Gu said.

This marks the first step for one of China's major EV makers to enter the Hong Kong market with a right-hand drive model, the report said, adding that XPeng's domestic rivals -- (NYSE: NIO) and (NASDAQ: LI) -- have not yet announced plans to sell EVs in Hong Kong.

NIO, based in Shanghai, is currently focusing its international efforts on Europe, and Li Auto, based in Beijing, has not yet begun to venture into international markets.

Right-hand drive is a large segment of the overall EV market, and XPeng is determined to build itself into a strong global EV company, the South China Morning Post quoted Gu as saying.

"By the time we enter, we will probably face pretty significant competition," he said in a keynote session at the South China Morning Post's China Conference: Hong Kong 2023.

"But we do feel that our products will have a different appeal. We want to make sure that the technologies we develop in China can be made available in Hong Kong as well," he added.

On February 3, XPeng announced the launch of its two latest EVs in the European market, the G9 flagship SUV and the new P7 sports sedan, marking the restart of an overseas expansion that XPeng had suspended for much of last year.

He Xiaopeng, the company's chairman and CEO, said on Weibo on June 18 that the company would launch "version 2.0" of its overseas expansion efforts starting in the third quarter with the delivery of the P7 and G9.

After that, XPeng will accelerate its entry into more markets, he said.

Unlike most of the models exported, XPeng expects to bring high-quality, high-tech vehicles to overseas markets and expects to see more and more Chinese brand vehicles around the world, he said.

Earlier today, XPeng announced that it has selected the ACCESS Twine for Car (Twine4Car) in-car infotainment solution to provide apps and games, including prominent streaming services, for its new range of EVs.

This will start with the all-electric XPeng P7 sedan, with European deliveries set to begin this summer, the company said.

XPeng sales in China have been weak over the past year, due to product switches and a weakening in overall EV demand.

The company delivered 7,506 vehicles in May, down 25.87 percent year-on-year but up 6.03 percent from April.

In the January-May period, XPeng delivered 32,815 vehicles, down 38.88 percent year-on-year, according to data monitored by CnEVPost.

By the end of May, XPeng's cumulative deliveries since its inception were 291,525 vehicles.

XPeng CEO sees China EV landscape far from set

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China NEV retail at 320,000 in Jun 1-18, up 5% from same period last month, CPCA data show

So far this year, China's retail sales of passenger NEVs were 2,741,000 units, up 35 percent year-on-year.

China NEV retail at 320,000 in Jun 1-18, up 5% from same period last month, CPCA data show-CnEVPost

(Image credit: CnEVPost)

From June 1 to June 18, retail sales of passenger new energy vehicles (NEVs) in China were 320,000 units, up 1 percent year-on-year and up 5 percent from the same period last month, according to data released today by the China Passenger Car Association (CPCA).

So far this year, China's retail sales of passenger NEVs were 2.74 million units, up 35 percent year-on-year.

From June 1 to June 18, wholesale sales of passenger NEVs in China were 308,000 units, down 8 percent year-on-year and up 7 percent from the same period last month, according to the CPCA.

So far this year, wholesale sales of passenger NEVs were 3.09 million units, up 38 percent year-on-year.

Between June 1 and June 18, retail sales of all passenger vehicles in China were 828,000 units, down 6 percent year-on-year and down 8 percent from the same period last month, the CPCA said.

So far this year, cumulative retail sales of passenger cars in China were up 3 percent year-on-year to 8.46 million units.

This means that from June 1 to June 18, the penetration of NEVs at retail in China was 38.6 percent, and 32.39 percent so far this year.

In the first week of June -- June 1-4 -- the average daily retail sales of passenger cars in China were 31,000 units, down 9 percent from a year ago and 42 percent lower than the same period last month.

In the second week -- June 5 to 11 -- average daily retail sales of passenger cars were 43,000 units, down 10 percent year-on-year and down 14 percent compared to the same period in May.

In the third week -- June 12 to 18 -- average daily retail sales of passenger cars were 58,000 units, down 2 percent year-on-year and up 21 percent compared to the same period in May.

China began halving purchase taxes on mainstream internal combustion engine vehicles last June, causing sales to shift toward the beginning of the month, the CPCA said. The policy was not renewed when it expired at the end of last year.

By comparison, this June is a normal sales month, so a dip at the beginning of the month is normal, the CPCA said, adding that auto sales are expected to decline year-on-year for the entire month of June.

Data Table: China auto sales from June 1-18

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XPeng to equip its vehicles in Europe with Twine4Car infotainment system for better experience

This will start with the all-electric P7 sedan, with European deliveries set to begin this summer.

(Image credit: XPeng)

Providing a localized infotainment system is a challenge for Chinese electric vehicle (EV) startups entering the European market, and XPeng (NYSE: XPEV) has chosen to work with a supplier that offers a proven solution to meet the needs of local consumers.

XPeng has selected the ACCESS Twine for Car (Twine4Car) in-car infotainment solution to provide apps and games for its new range of EVs, including prominent streaming services, the Chinese EV company announced today.

This will start with the all-electric XPeng P7 sedan, with European deliveries set to begin this summer, the company said.

(Image credit: CnEVPost)

Moving forward, existing XPeng drivers will also have the option to upgrade their cars with an over-the-air (OTA) software update to include Access' Twine4Car.

XPeng has ramped up its expansion into overseas markets this year, after slowing that effort last year.

On February 3, XPeng announced the launch of its two newest EVs to the European market, the G9 flagship SUV and the new P7 sports sedan, and allowed consumers in Denmark, Norway, the Netherlands and Sweden to order them.

On June 18, XPeng chairman and CEO He Xiaopeng said on Weibo that the company will launch "version 2.0" of its efforts in overseas markets starting in the third quarter with the delivery of the P7 and G9.

After that, XPeng will accelerate its entry into more countries, he said.

Unlike most of the exported models, XPeng expects to bring high-quality, high-tech vehicles to overseas markets and expects to see more and more Chinese brand vehicles around the world, he said.

The Twine4Car platform is the industry's leading automotive content and application services solution for connected car infotainment, enabling car companies to offer branded entertainment services, according to XPeng.

"We selected ACCESS Twine4Car as our in-vehicle infotainment provider to create a mobility experience that's more intuitive and enjoyable—our vehicles are designed to move people emotionally as well as physically," said Eric Xu, vice president of international markets at XPeng.

By using a more thoughtful approach to mobility, XPeng hopes to provide a higher level of sophistication and ease for drivers in Europe, said Xu.

The Twine4Car app store includes some of the most used and easily recognizable social and productivity apps that allow drivers and passengers to work and play in the car while parked or charging, according to an XPeng press release.

(Image credit: XPeng)

ACCESS also offers a new game portal for XPeng that includes console-grade games with the latest high-compression streaming technology, allowing users to play even on low-speed connections.

"Whether its drivers wanting to stream their favorite songs and podcasts, or passengers looking to watch their favorite videos and access their favorite social media platforms, we look forward to enabling connected infotainment experiences that match the beauty and quality of XPeng's exciting new electric vehicles," said Masahiro Aono, CEO, ACCESS Europe.

Twine4Car acts as a central hub for all in-car services, bringing together content from global media partners to provide XPeng's cars with a wide range of apps, TV services, games and VOD offerings, according to its press release.

XPeng launches G9 and new P7 in Europe, restarts efforts to build presence overseas

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NIO welcomes China’s move to extend tax breaks for NEV purchases

From now until 2027, pure electric vehicles will continue to enjoy purchase tax incentives, which will give vehicles a significant advantage over fuel-powered luxury vehicles in terms of purchase costs, NIO said.

(Image credit: CnEVPost)

China today announced details of an extension of tax incentives for new energy vehicle (NEV) purchases, and NIO (NYSE: NIO) welcomed the move.

From now until 2027, pure electric vehicles (EVs) will still enjoy purchase tax incentives, which will give NIO vehicles a huge advantage over fuel-powered luxury vehicles in terms of purchase costs, the electric vehicle (EV) maker said in a comment shared with CnEVPost.

With the new EV purchase tax policy in place, NIO's body-battery separation model could significantly help consumers lower the cost of purchasing a vehicle and reduce spending on purchase tax, it said.

The continuation of the purchase tax incentives is a great boon to the shift from fuel vehicles to NEVs and to stimulate auto consumption, NIO said.

Earlier today, China's Ministry of Finance announced that NEVs with a purchase date between January 1, 2024, and December 31, 2025, will be exempt from vehicle purchase tax, but the tax exemption will not exceed 30,000 yuan ($4,170) per vehicle.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with the tax reduction not exceeding RMB 15,000 per vehicle.

The latest policy continues to provide additional support for models like NIO that are battery swap enabled.

When consumers purchase a NEV, if the invoice for the car and the battery are separate, the taxable price is the price of the body without tax, according to the Ministry of Finance's announcement.

NIO's (NYSE: NIO) peer (NASDAQ: LI) also voiced support for the new policy earlier today.

Li Auto aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion by 2025, Li Xiang, the company's founder, chairman and CEO, wrote on Weibo.

China has provided an additional four years of stable policies, which is great and leaves Li Auto's team with no excuse not to meet its strategic goals for 2025, Li said.

By early 2026, Li Auto's ability to meet the goal will be proven, he said.

($1 = RMB 7.1935)

BREAKING: China extends full purchase tax exemption for NEVs until end of 2025

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Li Auto CEO reaffirms goal of reaching 1.6 million annual sales by 2025

aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion by 2025, its CEO said.

The CEO of Li Auto (NASDAQ: LI) welcomed the clarification of China's new energy vehicle (NEV) purchase tax exemption policy for the next few years and reiterated the company's ambitious goals.

Li Auto aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion ($70 billion) by 2025, Li Xiang, the company's founder, chairman and CEO, wrote on Weibo today.

China has provided stable policies for the next four years, which is great and gives Li Auto's team no excuse not to accomplish its strategic goals for 2025, Li said.

By early 2026, Li Auto's ability to meet that goal will be verified, he said.

Li Auto originally set that aggressive goal in February 2021, saying the company aims to be the No. 1 smart electric vehicle company in China with a 20 percent market share, or 1.6 million units sold annually, by 2025.

For reference, sold 1,804,624 retail units in China for the full year last year, ranking first with an 8.8 percent share, according to the China Passenger Car Association (CPCA).

Li Auto delivered 133,246 vehicles last year, up 47.25 percent year-on-year, but did not make the CPCA's top-selling automaker ranking.

All three models currently sold by Li Auto are extended-range electric vehicles (EREVs), which are essentially plug-in hybrid vehicles (PHEVs) that are still equipped with internal combustion engines.

Recently, there has been some concern that China may be scaling back support for PHEVs in order to accelerate the auto industry's transition to battery electric vehicles (BEVs).

Earlier today, China's Ministry of Finance released details of the policy to extend the purchase tax exemption for NEVs, with equal treatment for BEVs, PHEVs, EREVs, and fuel cell vehicles.

The country exempts NEVs with a purchase date between January 1, 2024 and December 31, 2025 from vehicle purchase tax, the tax exemption will not exceed RMB 30,000 per new energy passenger vehicle.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with the tax reduction not exceeding RMB 15,000 per new energy passenger vehicle.

To achieve its 2025 target, Li Auto announced two months ago its plan to launch new models in the next two years.

On the first day of the Shanghai auto show on April 18, Li Auto unveiled its all-electric solution, based on the 800 V high-voltage platform, capable of giving a BEV a 400 km range on a 10-minute charge.

With the launch of the solution, Li Auto officially enters a phase of parallel development of its EREV and BEV product lines, it said at the time.

By 2025, Li Auto's product array will include one super flagship model, five EREVs, and five BEVs, the company said.

By then, Li Auto's models for the market priced above RMB 200,000 will fully meet the needs of family users, it said.

($1 = RMB 7.1945)

Li Auto Family Tech Day: 1st BEV named Li MEGA, aims to be top seller above $70,000 in China

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China’s vehicle purchase tax exemptions expected to reach $72 billion in 2024-2027

China's cumulative tax exemptions for NEVs exceed RMB 200 billion by the end of 2022.

China's vehicle purchase tax exemptions expected to reach $72 billion in 2024-2027-CnEVPost

(Image credit: CnEVPost)

China today clarified its future purchase tax policy for new energy vehicles (NEVs), which is expected to exempt the industry from paying more than $70 billion in taxes over the next four years.

According to preliminary estimates, China's vehicle purchase tax exemptions will total RMB 520 billion yuan ($72 billion) from 2024-2027, Vice Minister of Finance Xu Hongcai said at a press conference today.

China will exempt NEVs with a purchase date between January 1, 2024 and December 31, 2025 from vehicle purchase tax, but the tax exemption for each new energy passenger vehicle will not exceed RMB 30,000, according to an announcement released today by the Ministry of Finance.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with the tax reduction not exceeding RMB 15,000 per new energy passenger vehicle.

To support the development of energy-efficient vehicles, China first began exempting NEVs from purchase tax in 2014, a policy that has been extended several times in the past few years.

The standard vehicle purchase tax in China is 10 percent, which is what traditional internal combustion engine (ICE) vehicles currently face.

By the end of 2022, the cumulative size of China's tax exemption for NEVs exceeded RMB 200 billion, and the annual tax exemption is expected to exceed RMB 115 billion in 2023, Xu said in the press conference.

The vehicle purchase tax exemption policy brings more direct feelings to consumers and has a clear effect on promoting the development of the NEV industry and expanding consumption, he said.

The latest policy will have no effect on NEVs priced below RMB 300,000, and the parts exceeding RMB 300,000 will be subject to vehicle purchase tax, he said.

According to 2022 data, new energy passenger vehicles priced at RMB 300,000 and below account for roughly 87 percent of production, and these limits, in general, will have little impact on consumers and the market, according to Xu.

In addition, Chinese Vice Minister of Industry and Information Technology Xin Guobin said in the press conference that the country welcomes investment from companies from various countries and supports their cooperation with Chinese companies in areas such as solid-state batteries and autonomous driving.

At the same time, China also supports local companies to invest and build factories outside the country to bring China's advanced technologies and products abroad, so that people in more countries can enjoy the fruits of technological progress, Xin said.

($1 = RMB 7.1941)

BREAKING: China extends full purchase tax exemption for NEVs until end of 2025

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