At the 2024 Paris Motor Show, Xpeng announced its ambitious "Go Global 2.0" plan, a strategy that marks another important expansion of Chinese NEV brands in the global market. Xpeng aims to enter markets in more than 60 countries and regions by the end of 2025, with overseas sales accounting for half of the company's total sales in the next decade. As the global demand for new energy vehicles continues to grow, Xpeng's strategy will further promote its influence in the international market.
Investment focus: European market
At the heart of Xpeng's "Going Global 2.0" plan is a strong focus on the European market. Europe has become an important position in the global electric vehicle market, and governments around the world have introduced supportive policies to promote the development of electric vehicles. Against this backdrop, Xpeng plans to invest more resources in the European market, bring more new models and facelifts, and continuously improve its after-sales network and service quality. Xpeng Motors believes that with its leading technology and unique product advantages, it will be able to occupy a place in the highly competitive European market.
At the Paris Motor Show, Xpeng Motors unveiled its latest product, the P7+, and simultaneously opened domestic pre-sales. As the first model of Xpeng's new-generation autonomous driving hardware platform, the P7+ bears the heavy responsibility of further increasing Xpeng's sales. After 1 hour and 48 minutes of pre-sale, the number of orders for the new car exceeded 30,000 units, which not only demonstrates the high recognition of the market, but also shows the strong competitiveness of Xpeng Motors in the field of smart electric vehicles.
Figure: Xpeng Motors' global map of 2.0 market strategy in 60 countries
Technological innovation: the engine that drives growth
The technological innovation of the Xpeng P7+ is particularly eye-catching. It adopts a vision-based perception solution and eliminates lidar, a new technology solution that reduces the hardware cost of XNGP by 50%. Despite the cancellation of LiDAR, the P7+ is still capable of supporting the high-end XNGP function and is equipped with the Dimensity 5.4.0 system, which can support 0-speed activation and in-place start. This innovation not only reduces costs, but also maintains the ability of high-level intelligent driving, demonstrating Xpeng's deep accumulation and forward-looking layout in the field of autonomous driving.
Continuous technological innovation is the key to the success of Xpeng's globalization strategy. Through continuous R&D and iteration, Xpeng Motors can not only improve the competitiveness of its products, but also quickly adapt to the needs of different markets. Especially in terms of technical standards and user experience, Xpeng Motors continues to optimize product performance through feedback mechanisms and data analysis to meet consumer expectations.
Cooperation and competition: the path to globalization
Xpeng's globalization strategy is also a comprehensive test of its brand and products. In the European market, Xpeng will face stiff competition from major global automakers. In order to enhance its competitive advantage, Xpeng Motors has cooperated with a number of international automotive companies. He Xiaopeng, chairman of Xpeng Motors, is full of confidence in this, and he said that Chinese auto companies need global partners to go global. Xpeng Motors has completed three phases of cooperation with Germany's Volkswagen Group, including cooperation in the development of mid-to-high-end vehicles and investment.
Volkswagen's advice and support in the supply chain, quality, and globalization enabled Xpeng to quickly build credibility and brand presence in the global market. Through cooperation with world-renowned brands, Xpeng can not only learn advanced production management experience, but also realize resource sharing in technology research and development, and reduce the risk of market entry.
Market outlook and economic impact
Xpeng's "going overseas 2.0" plan is not only a market expansion, but also a global layout of technology and brand. With the continuous deepening of Xpeng Motors in the global market, it is expected that overseas sales will account for half of the company's total sales in the next ten years, which will bring a stable source of revenue for Xpeng Motors.
According to Guosheng Securities' research report, based on the contribution of MONA M03 and P7+, it is expected that Xpeng's monthly delivery volume at the end of this year will significantly exceed the same period last year. Starting from Q3 2024, this strong product cycle will last about 18 to 24 months. This trend will not only drive Xpeng's market share growth, but also help to enhance the influence of the entire Chinese new energy vehicle brand in the international market.
Xpeng's global layout reflects its confidence in its own technological strength, and is also a strong promotion for the internationalization of Chinese auto brands. Through the successful expansion of overseas markets, Xpeng Motors will not only be able to enhance the popularity of its own brand, but also make a positive contribution to the rise of China's automotive industry on a global scale.
Future outlook
Xpeng's expansion in the global market is far from over. In the future, the company will continue to deepen its cooperation with local partners and expand its market share in more countries. At the same time, Xpeng Motors will also launch more models that meet the preferences of local consumers according to the needs of different markets. It is expected that in the next few years, Xpeng Motors will continue to enrich its product line to meet the changing market demand.
In addition, Xpeng will increase its R&D investment globally, especially in the fields of autonomous driving and intelligent connected technologies. With the continuous advancement of technology, Xpeng Motors will have the opportunity to provide more intelligent solutions in future mobility services, bringing better products and smarter travel experiences to consumers around the world.
Xpeng's globalization strategy is an all-round test of its brand influence and technological innovation capabilities. As Xpeng continues to expand in the global market, we expect it to contribute more wisdom and strength to the development of China's automotive industry." By continuously improving product quality and user experience, Xpeng Motors is expected to occupy a more important position in the global automotive market in the future and promote the further development and transformation of the new energy vehicle industry.
