Xpeng Motors plows 10 mln yuan in founding new sales & service subsidiary

Shanghai (Gasgoo)- Chinese EV startup Xpeng Motors founded a sales & service subsidiary on May 26 which involves a registered capital of 10 million yuan ($1,401,090), according to the business data search platform Tianyancha.

Dubbed Shanghai Zhipeng Automobile Sales & Service Co., Ltd., the new subsidiary has a business scope that extends to cover the business of insurance agency, the sale of new energy vehicles, new automobiles, auto parts, electronic products and automobile accessories, the parking lot service, the construction and operation of NEV charging and battery swapping facilities, the used car dealership, and the car rental service, etc.

(Xpeng G3, photo source: Xpeng Motors)

The new subsidiary is 100% possessed by Xiaopeng Motors Sales Co.,Ltd, a wholly-owned subsidiary of Guangzhou Chengxing Zhidong Automobile Technology Co., Ltd., according to Tianyancha.

The Guangzhou-based startup announced on May 19 it had been approved by the government to produce vehicles at its fully-owned manufacturing plant in Zhaoqing, Guangdong province.

The acquisition of the production license came with MIIT's issuance of a catalogue, which said the manufacturing base address of Zhaoqing Xiaopeng New Energy Investment Co.,Ltd. (Zhaoqing Xiaopeng) has been changed to Zhaoqing Hi-Tech Industrial Development Zone in Guangdong province, on which Xpeng's first self-built plant is located.

According to the business data research platform Tianyancha, Zhaoqing Xiaopeng, an investment subsidiary of Xpeng, has wholly acquired the stake in Guangdong FODAY Automobile Co.,Ltd. at 16 million yuan ($2,250,446), and Xpeng's president Xia Heng and vice president He Tao have taken chairs at FODAY's senior management.

The transaction implies that Xpeng Motors has obtained the qualification to independently make vehicles via a buyout of an existing complete vehicle manufacturer, said a local media outlet.

Besides, Xpeng Motor pumped 500 million yuan ($70,054,500) in establishing a subsidiary dubbed Guangzhou Xiaopeng Motors Industry Holding Limited. Founded in early April, the new company's line of businesses include the sale of automobile charging modules and charging piles, the design and development of charging facilities, the NEV charging service, the car & NEV battery rental service, as well as the technical services related to NEVs and ICVs (intelligent-connected vehicles).

(Xpeng P7, photo source: Xpeng Motors)

The EV manufacturer also put its second mass-produced model, the Xpeng P7, onto the market on April 27 with eight variants offered at one go. The new BEV model is expected for delivery from the end of June.

For the first four months, the insurance registration of the Xpeng G3 reached 3,565 units, of which 1,234 units were registered in April, according to the China Insurance Regulatory Commission.