NIO management recently said that despite the efforts of its European team, the company's local infrastructure is still lower than internal expectations.
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The team calls NIO management's long-term strategy the Blue Sky Blueprint, saying it will be a moat for the EV maker, though it's very costly to build.
The Denza N7 SUV is expected to be released in the first half of this year and is expected to target a market of around 400,000 yuan ($57,800).
Shenlan's first model is a rival to Tesla's Model 3 and has delivered a total of 37,328 units since deliveries began in late August.
For power battery makers, it's important to keep production lines running consistently, so a price war for batteries is long expected, industry watchers said.
The P7 is a crucial model for XPeng, contributing 49 percent of the company's sales in 2022.