At the IAA Mobility motor show in Munich, Xpeng, the Chinese electric vehicle manufacturer, unveiled plans to expand its presence in several European markets, including Germany, Britain, and France, by 2024, as shared by President Brian Gu during a press briefing on Monday.
Furthermore, the company intends to introduce its G9 and P7 electric vehicles into the Israeli market starting early next year, with the G6 becoming its first right-hand drive model offering.
Having an ambitious strategy to venture into the global market
Brian Gu emphasized, “We have an ambitious strategy to venture into the global market.” Presently, the company already has a presence in the Netherlands and Norway. Chinese electric vehicle manufacturers are actively pursuing expansion in Europe, aiming to achieve improved profit margins and accelerated growth in international markets while competing with European counterparts by offering more affordable vehicle options.
It’s worth noting that Chinese electric vehicle manufacturers have been contending with a challenging domestic price competition environment that has impacted their profitability and limited growth. Although they have experienced rapid sales growth in Southeast Asia and South America, the European market has posed unique difficulties for Chinese automotive brands. These challenges include navigating European regulations, establishing electric vehicle infrastructure, aligning with European consumer preferences, and building brand recognition.
Despite experiencing recent fluctuations in its financial performance that have correlated with company developments, XPeng Motors is actively pursuing an expansion of its global electric vehicle (EV) offerings. As per statements from the Chinese automaker’s president earlier today, XPeng is set to commence sales in three additional European markets starting in the upcoming year.
Establishing brand recognition and gaining insights
XPeng initially entered the European market through Norway, introducing its P7 sedan and commencing initial deliveries during the summer of 2021. Subsequently, there were indications that the automaker intended to expand its overseas presence by introducing the G9 SUV.
By February 2022, XPeng had solidified retail agreements in new markets such as the Netherlands, Sweden, and Denmark. The objective was to establish brand recognition and gain insights into the unique needs of customers in these markets in preparation for official sales.
Since then, XPeng has unveiled a refreshed version of the P7 for 2023, which joined the G9 in these European markets, with sales commencing earlier this year. Additionally, the company has been establishing a network of service centers in these regions. Brian Gu, the Vice Chairman and President of XPeng, has already promised further expansions on the horizon.
Today, at the IAA Mobility event in Munich, XPeng Motors has disclosed the specific new markets it has in its sights for future expansion.