SHANGHAI, Aug 2 (SMM) - On July 31, Xpeng Motors (HXEX: 9868) officially launched its manufacturing factory in Wuhan Economic and Technological Development Zone. The project, covering an area of about 1,500 mu, will hold processes of stamping, welding, painting, final assembly, battery, armature, etc. The project has a planned annual production capacity of 100,000 vehicles and will achieve an annual output value of more than RMB 30 billion when it reaches full production.
HE Xiaopeng, chairman of XPeng Motors, said at the launching ceremony that the market shares of intelligent vehicles will reach 60% in China's first-tier cities by 2025, which he believed to be a huge opportunity. In the past six months, XPeng Auto maintained its high growth rate. The Wuhan project will accommodate the company’s third-generation intelligent platform, being the first global platform for XPeng Auto.
In March, the penetration rate of new vehicle sales of new energy passenger vehicles has exceeded 10%. HE Xiaopeng believes that the era of intelligent vehicles is coming more rapidly than the public originally thought. 2023 is expected to be the first pivot for intelligent vehicles in China, and then advance to an explosive period and overturn the traditional functional cars from 2023 to 2025, moving rapidly from advanced intelligence to full-level intelligence. The revolution in the sector will accelerate, which will also further release the market demand for intelligent electric vehicles.
The strong growth momentum of XPeng Motor also evidences this assertion. In the first half of this year, its cumulative deliveries have surpassed the whole year of 2020, reaching 30,738 units, 5.6 times more than the same period last year. In the second half of the year, two blockbuster models will be launched: the XPeng G3i was officially launched in July and deliveries will start in September; model P5 was unveiled in April and orders quickly exceeded 10,000 in just 53 hours, and deliveries will start in the fourth quarter. The launch of the new models is expected to drive XPeng's deliveries to another record. The Wuhan project will also enable the company to meet the fast-growing market demand for the general public.
