Author: Qiu Kaijun
Editor: Qiu Kaijun
XPeng Motors, who has won the “Intelligent” tag, aims to take a later-comer strategy in electric technology and form a technical advantage in electrification through self-development and production of motors, collaborative research and development of batteries, and ultra-fast charging technology and layout of charging networks.
On the evening of August 23, at the conference call for XPeng Motors’ second-quarter report, Chairman He XPeng said:
“Starting from G9, XPeng Motors adheres to long-term investment and independent research and development in electrification technology, which will lay the foundation for us to enter the leading edge in technology in addition to intelligence, and will also bring about a significant improvement in consumer experience.”
He XPeng believes that “with the continuous strengthening of our advantages in longer endurance, higher charging efficiency, and broader charging network coverage, XPeng Motors will accelerate the conversion of mid-to-high-end gasoline and hybrid vehicles to pure electric vehicles.”
At the same time, He XPeng also revealed the product plan for 2023. According to He XPeng, XPeng Motors’ subsequent models will be very competitive in intelligence and electrification.
However, like many auto companies, XPeng Motors still has to overcome a relatively difficult third quarter before its anticipated 2023.
Build Electric Advantages from Super Charging
Although XPeng P7 once achieved a range of 706 kilometers, winning the title of the longest-range electric vehicle at the time, XPeng Motors did not have outstanding advantages and tags in electrification technology.
However, starting from G9, XPeng Motors aims to showcase its advantages in electric technology with the tag of “super charging.”
“G9 fully embodies XPeng’s leading advantage in independent research and development of electric technology, leading the industry to achieve a ‘high-voltage closed loop’ with an in-car 800V high-voltage platform and an external 480kW ultra-fast charge, providing our users with the ultimate charging speed,” said He XPeng.
In addition, He XPeng revealed that “starting from G9, and subsequent new models will fully support the ultra-fast charging system.”
To achieve ultra-fast charging, it is not enough to improve the vehicle end alone; there must be cooperation from the charging network. XPeng Motors has invested heavily in charging networks and will focus on ultra-fast charging.
As of early August this year, XPeng’s self-operated charging stations had reached 1,000, taking the lead in the industry. In addition, to fully support the 800V ultra-fast charging vehicle models, XPeng has started to fully deploy 480kW self-operated supercharging stations since August, aiming to reach several hundred in size by next year. By 2025, XPeng hopes to build another 2,000 ultra-fast charging stations.
The implementation of superfast charging requires the cooperation of batteries. He XPeng revealed that with the joint design and development of partners, XPeng Motors has shared patents in some areas. “The development and deployment of the entire vehicle battery, PACK management, and charging pile are integrated into XPeng’s system.”
In addition to superfast charging, He XPeng also revealed that they have achieved self-design and self-production of electric motors, which can help XPeng products have longer range, lower costs, and better quality.
Continuously Leading in Intelligence
XPeng Motors has strengths in electric vehicles and will not yield but rather seeks to lead in intelligentization.
In terms of intelligent driving assistance, the industry has reached the moment of “racing” for the implementation of urban NGP application. It seems that XPeng Motors has the opportunity to take the lead among Chinese car companies and provide a better experience.
On the upcoming G9, XPeng Motors will launch the next-generation full-scenario intelligent driving assistance system based on the industry-leading urban NGP.
He XPeng also revealed the progress of urban NGP, “We completed the development and testing of the first mass-produced version of urban NGP in the second quarter. In a series of difficult scenarios such as bustling urban areas and rainy nights, the XPeng P5 achieved the best level of safety and passing efficiency in the industry with only 30 TOPS computing power and related perceptual hardware.”
He XPeng also said that the Ministry of Natural Resources recently announced the pilot application of high-precision maps for intelligent connected vehicles in six cities including Beijing, Shanghai, and Guangzhou. On this basis, “we look forward to the official public beta launch of urban NGP in the near future.”
To continuously improve the ability of intelligent driving, in early August, XPeng Motors and Alibaba Cloud jointly established the automatic driving intelligent computing center “Fuyao.” This is also the largest automatic driving intelligent computing center in the Chinese automotive industry, laying the computing power foundation for XPeng’s full-scenario intelligent driving assistance system and future L4 automatic driving algorithms.
Meanwhile, XPeng Motors has also initiated the development of Robotaxi software based on a full-scenario intelligent driving assistance system.
He XPeng is very optimistic about the progress and application of intelligent driving. He said, “Starting from G9 in 2023, our full-scenario intelligent driving assistance will be the first kill app in intelligence, which will open up customers’ perceptions of safety, cost, and experience in using intelligent driving assistance in full scenarios.”
Currently, including XPeng Motors, intelligent driving assistance models have experienced many accidents in actual use by car owners. However, in terms of talent, R&D, product functions, and experience, XPeng Motors is still leading domestically.# Embracing A Big Year of New Products
According to He XPeng, the launch of the NGP in the city signifies that “we are the leader in intelligence, and we will further expand our advantages in talent, data, and system efficiency to widen the gap with our peers in terms of coverage, comprehensive experience, safety, and cost.”
After the introduction of the G9, XPeng Motors has four models, such as G3i, P7, and P5, and in 2023, it will launch two new products to form a more diversified product array.
In a phone meeting, He XPeng stated, “We will accelerate the pace of launching new products to enrich our product matrix within the price range of 150,000 to 500,000 yuan. The B-class new car that we plan to release next year will consolidate and broaden our market share in this specific market segment. Additionally, we will release a new C-class car, which will bring an ultimate product for users who need more spacious and comfortable space.”
Furthermore, Gu Hongdi, the President of XPeng Cars, introduced that the new B-class platform car will be an SUV with a larger market share than G9, and the pricing will be lower, serving as a competitor of Tesla Model Y.
Not much information has been disclosed regarding the C-class car. However, from the information circulating in the industry, it will be an MPV model.
He XPeng hopes that “two new models along with the G9 will boost our sales growth rapidly.”
Gu Hongdi believes that the P7 will continue to show strong performance next year, and the delivery volume of G9 will exceed that of P7.
In 2023, XPeng Cars will adopt new platforms and manufacturing technologies.
He XPeng stated that starting from G9, XPeng Cars unified intelligence, electrification, and vehicle technology platforms into a unified platform for the first time, and all three aspects can achieve a score of 90 points.
In addition, XPeng Cars will significantly improve its manufacturing process, including sensory quality, aesthetics, and applying integrated die casting, vehicle CTC, CTP series in the manufacturing process to reduce vehicle development costs and improve efficiency.
Third Quarter Encounter Off-season
Before the hopeful 2023, XPeng Cars still needs to survive 2022, especially the third quarter.
He XPeng estimated, “our total delivery volume in the third quarter of 2022 will be approximately 29,000-31,000 units, and revenue is expected to be around RMB 6.8-7.2 billion.”
In the second quarter, XPeng Cars delivered 34,400 units with revenue of CNY 7.436 billion. Hence, the third quarter will face a decline in delivery and revenue compared to the previous quarter.
He XPeng and Gu Hongdi attributed it to the unfavorable impact of the epidemic and seasonal factors. “You can see similar performances in other models or friendly competitors,” said Gu Hongdi.The good news is that the gross profit of XPeng Motors is expected to improve in the third quarter, reaching the same level as in the first quarter. In the third quarter, the delivery proportion of P7 in XPeng Motors’ product mix will increase.
In addition, the supply chain problem that has troubled the industry has been greatly alleviated.
He XPeng said, “From early next year, there will be a relatively good relief in battery capacity. In terms of chips, dozens of chips were often in a state of long-term high risk in the first half of the year, and there has been a significant decline in the number of chips that are still at high risk based on current observations.” However, “there may still be some slight bottlenecks for chips in smart cars.”
From the information released in XPeng Motors’ Q2 report in 2022, XPeng Motors not only takes the lead in intelligence but also has made breakthroughs in electrification and formed advantages.
He XPeng believes that “we will achieve balance in lower costs, longer endurance, better safety, more efficient charging efficiency, and more scalable charging networks.” What kind of market competitiveness this balanced electrification technology will bring can be seen in the subsequent financial reports.
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.