XPeng’s CEO says annual output threshold for smart EV startup should be lifted to 400,000 units

Shanghai (Gagsoo)- The basic annual output threshold for an intelligent electric vehicle startup should be raised to 400,000 units, He Xiaopeng, chairman and CEO of XPeng Inc., said on July 7 at the 14th China Auto Bluebook Forum (“CABF 2022”).

The viewpoint was conveyed in contrast to the 10,000-unit yearly production volume threshold universally acknowledged by China's auto industry.

Looking back on the company's development history, Mr. He said XPeng made some tough decisions, such as forgoing the REEV (range-extended electric vehicle) development route to focus on the all-electric one.

He added the REEV is sure to exist in the transition from traditional oil-fueled cars to new energy vehicles, and has massive market demands. However, the demands for REEV models might be gradually whittled down after the year 2023 or 2024, and some players would abandon the REEV route when they have other technical route options, he added.

XPeng recorded monthly deliveries of 15,295 smart EVs in June 2022, representing a 133% spike year-over-year, and a 51% jump compared to May 2022. It delivered 34,422 vehicles in total for the second quarter of 2022, ranking first among emerging auto brands in China for the fourth consecutive quarter.

Regarding the deliveries for the first half of 2022, XPeng also ranked highest among NEV startups in China by delivering 68,983 vehicles in total (+124% YoY).