1. SKU issue, why G model is introduced?
Actually, the SKU of G9 is simpler than previous models, but there are still some challenges in understanding, such as the optional configurations. There are problems in both configuration ability and logic. We will think about it for one or two days, and then push forward to improve the situation as soon as possible.
All models of G9, except for the entry-level model, are equipped with XPILOT 4.0. Therefore, from a different angle, 4.0 already includes NGP, ACC and LCC, which are all newly rewritten, and there is also a laser radar model that hopes to achieve point-to-point intelligent driving. XNGP has already achieved all functions before the arrival of autonomous driving. However, the entry-level 570G model is designed based on the voice of users, and there are still many users in the market who just need a basic electric car, so balance needs to be achieved.
2. What is the expected delivery time for G9?
It should at least exceed P7. G9 is well balanced, and the price of the main sales model is within 400,000 yuan, with a very balanced configuration in the same range, including space, intelligence and driving experience.
3. When can intelligent driving bring greater growth?
There are three key issues. The first is that all scenarios must be supported. Currently, most scenarios are just parking and high-speed driving, but the city is actually the main scene for using vehicles. We will achieve this through OTA in 2023 to 2024.
The second issue is about maps. High-precision maps are sometimes discontinuous, and processing between high-precision maps and ordinary maps is a difficult point. Map management is extremely complex, which is also something that XPeng is specifically doing. We will achieve a score above 90.
The third issue is about reliability and safety. The complexity of the city is one or two orders of magnitude greater than that of the high-speed scene, and a lot of resources are needed to invest. Pure hardware costs alone are already very high.
4. What is the competitive landscape of L8 and G9?
There are many differences between electric vehicles and hybrid vehicles, and the logic is different from that of hybrid vehicles. In this price range, the endurance of electric vehicles is relatively higher, which can meet the needs of city and certain suburban trips. The experience of charging pure electric vehicles once a week and hybrid vehicles several times a week is different, and pure electric vehicles can also be easier to have better driving experience. There is a large market for users, some prefer pure electric vehicles, and some prefer hybrid vehicles. How to find balance is a great challenge, and the key is to capture users who like you.
5. How big a threshold does XPeng have in intelligent-related leadership, and how should we view it?
If a technology can lead by three years, that is already a lot. Accumulation is also important in technology. A Shenzhen-based competitor has been doing new energy for more than a decade, but real rapid growth has only occurred in recent years. Under the leadership of NGP, there will be some new things next year regarding intelligent driving, and there will be a great leap forward in the next two to three years. Catching up at that time will be difficult.
6. New forces are turning into old forces, and traditional manufacturers are also progressing rapidly. How do you see this?Circular racetrack running is all about straight line acceleration and deceleration in turns. Now everyone’s new forces are still in the turns. How to control the speed on the turn is still a problem that some companies are facing. On the one hand, they rely on inherent advantages, and on the other hand, they are also learning from others’ abilities. They are still on the straightaway, but when it comes to the turn, how to solve the technical problems that need to be overcome is a problem that needs to be faced. XPeng will also quickly accelerate after coming out of the turn.
7. How do you see BYD and Huawei?
They are both on the new energy track, and they are on their own straight path. In fact, rapid development of new car companies is not necessarily a good thing. Every plank of the wooden barrel is important and needs to be steady. For example, the biggest problem we encountered last year was the supply chain and production capacity. However, we have some friendly competitors who ran faster, and we congratulate them.
8. How to understand the comparison with Porsche?
The benchmark products have no shortcomings and have long-lasting advantages. Personally, I like Porsche and hope to make XPeng an aesthetically pleasing and global company. But the benchmark is also sustainable and long-term. Our current configuration may have some problems. Internally, we need to improve how to make the configuration and price more attractive.
9. How many innovations are there in XPeng G9?
There are actually many innovations on the G9, some of which are still under development and will be made available to users through OTA updates. When there are many innovations, it is necessary to stabilize the rhythm and do a good job of implementation.
Many car companies are taking small steps and quick runs. Many users currently feel that “the next one will be better.” But in fact, the next step is autonomous driving, and there is not much practical demand for over 800km of range. Even after the 4C charge, faster charging does not improve the user experience much. Too fast of a pace can also lead to quality problems. XPeng now needs to lead the way in the turns, ensure stability, and quickly bring autonomous driving to the next stage.
10. Issues with the super fast charging system?
Deployment will accelerate in the fourth quarter. If three things are done well, electric vehicles can replace fuel vehicles: fast charging, convenient charging, and cheap batteries. Battery costs have gone against the trend in recent years, but battery costs will drop more significantly after 2023.
11. Is there a big pressure this year? Will there be anxiety about exploring the brand?
Every day of making cars is filled with anxiety, but it’s better now because we can see what will come next year. The key is that you won’t be anxious if you can see the future. The launch of a technology from rollout to stabilization to conversion requires a long cycle.
The road XPeng has chosen requires exploration, preparation, and education of the market. We will choose to do less and do deeper, and use platformization to lay the groundwork for subsequent things. The competition logic and strategy of a flourishing market and a stable market are different. For example, some people now use the strategy of negative gross profit to attack the market. In fact, if it were a stable market, XPeng would move faster.
12. NGP-related regulations and policy issues?The map was jointly applied and approved by XPeng and Amap, and most areas of Guangzhou are covered. Today, all L2 intelligent driving requires driver attention, and NGP is also developed under these policies and regulations. If there are subsequent updates to the regulations, we will also adapt accordingly.
13. How do you view the internal competition in the current new energy vehicle market?
Competition is not stable. Today may be good but tomorrow may not be. We need to have patience and find new ways of doing things. Head companies that have been researched may face follow-up attacks from others in one or two years. In addition, we need to innovate with value.
14. What impact will XPeng’s new technology have on the industry?
Innovation of new technologies is painful. Out of 10, only two may succeed, but those two will be quickly learned by others. So, we need to innovate moderately. Moreover, the application of new technologies will also make the supply chains more mature, providing more reference and guidance to the market.
15. What are the market expectations?
G9 has good product power, and we only need to do a good job in configuring the products. When P7 was first released, sales were average, but sales gradually climbed up with the release of NGP and improvement in supply chain management.
From 2018 to now, XPeng has been moving forward steadily, and consistency is key in the process of building a brand. If we only rely on one methodology, we may not be able to turn around when we reach a bend. Many things need to be thought of and done in advance.
16. What is the basis for XPeng’s expectation of exceeding 10,000 monthly sales for G9?
We have targeted the sales of tens of thousands by competitors. If we configure the products well, there will be a lot of imagination in this market.
17. How do you view the impact of the capital market?
The capital market does have a huge impact on the company, and there will be pressure. Many things cannot be solved in a month. We saw some challenges before and began to prepare for them. We made changes that needed to be made and apologized to customers when necessary. We need to have the mindset to make progress.
18. How do you view P5 and G9’s significance for XPeng?
P5 meets expectations, but there were some problems with supply chain management. In fact, it’s not easy to decide to spend millions on research and development. G9 is what we are doing for the global market. We need to match many requirements in Europe, and all versions are priced at over 300,000 yuan. It has great significance for XPeng in every aspect.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.