China-based eletric vehicle and technology startup Xpeng is prepared to enter the lucrative U.S. market when the political situation allows.
That’s the message from its billionaire CEO and co-founder, He Xiaopeng, who spoke to WardsAuto during the European launch of the brand’s first global electric vehicle, the L03 compact coupe SUV.
He fully accepts the current U.S. position with regard to imports from China, but should the political situation change, the CEO said that Xpeng is happy to expand into the market.
“Well, I think that if the U.S. policy allows for companies like us to stay or enter the market and build factories there, definitely we’ll embrace that decision,” He told WardsAuto in an interview.
He believes Xpeng, which he describes as a technology company that also makes cars, is part of the sharing of technology knowledge in global markets and would benefit greatly from growth in North America.
“America will be one of the most important markets that we have to enter because it will help us to grow better as well,” said He.
In an earlier press conference, Alex Tang, Xpeng’s head of international development and service, answered a question about the brand’s expansion plans into Canada.
He believes more global markets are opening up for auto brands in China, despite the country’s own cap on the annual numbers of imported vehicles, and that Canada presents a good opportunity for growth.
“We have a very good contact with all of the Canada government officials and also the local partners during the past half a year, and we have to evaluate and plan to enter this market,” said Tang. “We want to have a long-term strategy to be there as a long-term brand.”
The global launch in Munich of Xpeng’s new L03 drew media representatives from around the world, including several from the U.S. What they saw was a compact coupé-esque loaded with executive-level technology and features at a bargain basement price.
The entry-level rear-wheel-drive version boasts a range between charges of 445 km (276 miles) with a 0-to-62 mph sprint time of 7.5 seconds and a sticker price in Europe of just 35,600 euros ($40,712). That undercuts the Tesla Y’s price tag of 39,990 euros and the Hyundai Ioniq 5 at 41,900 euros.
It will also be offered with a 1.5-liter gasoline generator range extender to claim a total range of more than 1,000 km and a sticker price of 38,600 euros.
The lineup-topping all-wheel drive Ultra model claims the sprint time in 4.5 seconds, 10% to 80% charging in 20 minutes, climate control ventilated front seats with massage function and Level 2+ autonomous driving — with a sticker price of 46,600 euros.
In the group press conference, He emphasized the importance of localized partnerships such as those Xpeng has with automotive contract manufactuer Magna at its Austrian production plant, which assembles the brand’s fullsize G9 SUV and G6 midsize model.
The CEO highlighted ongoing discussions the brand is having with the Volkswagen Group, which he hopes to announce as a partnership when negotiations are finalized.
He also expects Xpeng to have multiple vehicle production sites in Europe on top of several research and development centers covering automotive and robotic activities.
In our interview with He, WardsAuto asked about the company’s vehicle production strategy, including building new assembly plants. He said Xpeng’s focus is on brownfield sites where facilities can be constructed quicker and more cheaply than those on greenfield locations.
Xpeng is currently scouting several possible locations in Europe. “But mainly I think it's going to be in Germany or maybe southern part of Germany,” he said.
WardsAuto also asked He if the facilities would be built from scratch using locally sourced materials or just be knock-down kit assembly plants.
“Actually, as long as we are complying with the regulation, then we will be happy, right?” said He. “If it's like 70% requirement as a threshold, then we will do 70%.”
He also stressed the likelihood of collaborations with European automakers sharing production facilities. “They're not going to build a facility just for us, but they already have their facility and that would be the best partner option,” He said. “As long as it's compliant with local regulation, we're looking for partners that can fit our timeline.”
