Xpeng to launch AI-defined new brand targeting 100,000-150,000 yuan mass market

  • XPENG to introduce a new brand focusing on AI-defined Smart EVs for the younger generation globally
  • New brand aims to offer “the first AI-driven smart cars for young people,” first in China to offer smart driving functions with models priced 100,000-150,000 yuan (USD15,000-23,000)
  • XPENG aspires to explore future mobility with focus on AI technology

XPENG Motors (“XPENG” or the “Company,” NYSE: XPEV and HKEX: 9868), a leading Chinese smart electric vehicle (“Smart EV”) company, today announced that it is about to launch a new brand in China, creating a new breed of AI-powered Smart EVs for young customers worldwide.

“The next decade of new energy vehicles will be a decade of intelligence. XPENG will relentlessly continue our exploration of smart driving technology going forward and as the next step, we plan to launch an A-class Smart EV priced between 100,000 to 150,000 yuan(USD15,000-23,000), providing our global customers with a genuine AI-driven user experience,” XPENG Chairman and CEO, He Xiaopeng, said in his speech at the China Electric Vehicle 100 Summit held in Beijing on March 16.

Vehicles priced between 100,000 to 150,000 yuan have long been the mainstream choice for Chinese consumers. With over 8 million cars sold every year, this price segment possesses abundant market demand, strong development potential, and increasing market share. According to data from the China Passenger Car Association, in 2023, the market share of vehicles priced between 100,000 to 150,000 yuan accounted for approximately 34% of the market, compared to about 31% in 2022. At the same time, the penetration rate of new energy vehicles in this price range is also continuously increasing. However, there are few products in this market segment that offer smart driving functions, let alone AI-driven smart driving.

The first in China to bring advanced smart driving capabilities to the 100,000 to 150,000 yuan A-class car market, XPENG’s new brand is dedicated to providing “the first AI-driven smart car for young people,” and in the future, it will continue to introduce multiple models with different levels of intelligent driving capabilities under this brand, providing users with the best intelligent driving experience in its class.

The era of “AI-defined cars” has arrived. Currently, mainstream brands are entering the field of smart driving, with the estimated penetration rate of vehicles equipped with L2-level-and-above ADAS capabilities reaching 49.9% by 2025. In the creation of the new brand and its products, XPENG will leverage its leadership in smart driving technology development and cost control advantages, quickly transferring mainstream intelligent driving functions to lower price points.

As the first Chinese automaker to offer mass-produced ADAS function for both highway and urban driving scenarios, XPENG enables its users to enjoy industry-leading smart driving functions with exceptional experience. On February 29, XPENG rolled out the unlimited XNGP ADAS function for experienced users, without restrictions on cities or routes. As of February 2024, the penetration rate of XNGP ADAS for urban driving among monthly active users reached 83%, making XPENG the industry leader in terms of active users, user experience, and penetration rate of urban smart driving mileage.

At the China Electric Vehicle 100 Summit, CEO He Xiaopeng also announced that XPENG will upgrade its “AI-enabled smart driving” this year, with plans to invest 3.5 billion yuan in R&D and recruit 4,000 new employees. In addition, in the second quarter of this year, XPENG will also fulfill the commitments made during the 2023 XPENG Tech Day event to deploy AI large models on cars, offering the first mass-produced AI and vehicle cognitive assistant in the automotive industry. Commitment to innovative mobility experience and continuous investment in AI technology demonstrates XPENG’s relentless exploration for smarter and more sustainable mobility solutions.

2024 marks the 10th anniversary of XPENG. The launch of the new brand will be a powerful move for XPENG to face the challenges of 2024, marking XPENG’s entry into a new stage of multi-brand global strategic operation and further acceleration of future mobility.