{"id":630209,"date":"2023-04-16T18:45:00","date_gmt":"2023-04-16T23:45:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/16\/xpeng-doubles-down-on-manufacturing-costs-amid-price-war\/"},"modified":"2023-04-16T18:45:00","modified_gmt":"2023-04-16T23:45:00","slug":"xpeng-doubles-down-on-manufacturing-costs-amid-price-war","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/16\/xpeng-doubles-down-on-manufacturing-costs-amid-price-war\/","title":{"rendered":"Xpeng doubles down on manufacturing costs amid price war"},"content":{"rendered":"

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Guangzhou company plans to shave 25% off the cost of powertrains, battery cells included, and save 50% on intelligent driving features by the end of 2024. <\/h2>\n<\/p>\n<\/div>\n
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\n\n $\"Xpeng$ \n<\/picture>\n<\/a>
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\nBLOOMBERG\n <\/p>\n
Xpeng\u00a0Motors’ prototype center in Guangzhou. The EV maker aims to cut manufacturing costs further to counter a price war that is undermining profits in China.<\/p>\n<\/div>\n<\/div>\n
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Chinese electric vehicle<\/a><\/strong> maker Xpeng Inc. hopes that dramatic cuts to manufacturing costs will propel the eight-year-old company to profitability, co-president Brian Gu told reporters at the Shanghai auto show, which opens to the general public on April 20.<\/p>\n
The Guangzhou-based company plans to shave 25 percent off the costs of its powertrains, battery cells included, and save 50 percent on intelligent driving features by the end of 2024, Gu said. As of now, the two account for more than half of the cost building Xpeng EVs, he added.<\/p>\n
Last year, disappointing sales forced Xpeng to push back its timeline for profitability to 2025.<\/p>\n
But battery materials are getting cheaper, Gu said, generating savings this year and into next. The company is also trying to reduce its use of laser-based radar, chips, sensors and cameras in automated driving features.<\/p>\n
The company is also betting a new design and manufacturing architecture, which it calls SEPA2.0, will help boost efficiency and reduce costs, CEO He Xiaopeng said on a launch event on Sunday.<\/p>\n
Xpeng will introduce its first model developed on the new platform, a midsize crossover to rival the Tesla<\/a><\/strong> Model Y, when the show opens to the media on April 18. It\u2019s not saying how much it will cost, but Gu said the company will focus on developing core products with a price range of 150,000 yuan ($21,800) to 350,000 yuan. The company may launch another model by the end of this year.<\/p>\n
\u201cThe industry is becoming a lot more competitive, and there are a lot more models,\u201d Gu said. Not long ago, EV buyers were a smaller, wealthier group, he said, but as that\u2019s changed, it requires \u201ca focus on offering attractive products at an affordable price.\u201d<\/p>\n
A price war trigged by Tesla Inc. in the beginning of the year has put pressure on carmakers in the world\u2019s largest market. Roughly 20 percent of the passenger vehicles on the market saw price cuts of more than 10,000 yuan ($1,500) in the first quarter, data compiled by research provider China Auto Market show.<\/p>\n
Xpeng said its intelligent driving technology is \u201ca lot better suited for the Chinese market\u201d compared with Tesla\u2019s, Gu said, pointing out that the technology originally developed in the U.S. doesn\u2019t work with high-definition maps and lacks local developing and testing.<\/p>\n
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\n Margarett Michaud<\/p>\n","protected":false},"excerpt":{"rendered":"
Skip to main content Guangzhou company plans to shave 25% off the cost of powertrains, battery cells included, and save 50% on intelligent driving features by the end of 2024. BLOOMBERG Xpeng\u00a0Motors’ prototype center in Guangzhou. The EV maker aims to cut manufacturing costs further to counter a price war that is undermining profits in […]<\/p>\n","protected":false},"author":1,"featured_media":630210,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2807,534,88959],"tags":[],"class_list":{"0":"post-630209","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-doubles","8":"category-financial","9":"category-xpeng"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/630209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=630209"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/630209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/630210"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=630209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=630209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=630209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}