Smart car should be priced at least 150,000 yuan to be profitable: XPeng’s chairman

Hefei (Gasgoo)- A profitable smart car should be priced at least 150,000 yuan ($23,460) and the case will the same even in the year of 2025, He Xiaopeng, Chairman and CEO of XPeng Inc., said at the 13th China Auto Bluebook Forum kicking off on June 10.

XPeng's chairman and CEO He Xiaopeng; photo credit: the 13th China Auto Bluebook Forum

“It is impossible to make a car highly intelligent if it was priced lower than 150,000 yuan as intelligent capabilities are always on track of progress,” Mr. He said.

According to Mr. He's speech, the average price of XPeng's vehicles has topped 250,000 yuan ($39,105) per car so far this year.

“I think the average price of a car rests upon the automaker's future position over its products and how the company mulls over intelligence,” Mr. He said.

XPeng has been targeting the mid-to-high position. “As far as I am concerned, a mid-to-high car should be priced between 150,000 yuan and 400,000 yuan ($62,570),” he added.

Meanwhile, Mr. He noted smart cars and electric vehicles are expected to account for up to 60% of new car sales in China’s first-tier cities in 2025, and 50% of the 60% sales will be from smart cars.

Moreover, the intelligent vehicle will meet its first turning point in 2023 when the Level 4-ready advanced driver assistance system will be operational in China, said Mr. He.