Xpeng enters HK market in latest go-global drive
Xpeng has officially announced its entry into Hong Kong, as the Guangzhou-based electricvehicle maker (EV) steps up its expansion plans along with its domestic peers.
The company displayed the battery-powered G6 sport utility vehicle and the X9 multipurpose vehicle, as well as the Voyager X2 two-seater flying car made by affiliate Xpeng AeroHT, at the Harbour City shopping centre in Tsim Sha Tsui yesterday.
The entry-level G6 will be sold for HK$299,000 as part of a trade-in offer, while the X9 starts at HK$500,000. Both models are equipped with Cantonese voice control.
“We are committed to providing the best products and first-rate customer services that meet the aspiration of Hong Kong consumers,” said James Wu, vice-president of finance and accounting at Xpeng.
On Tuesday, the Biden administration said it would raise tariffs on EVs to 100 per cent, as part of levies on US$18 billion of Chinese goods to protect US producers.
An investigation launched by the European Union last year into Beijing’s subsidies for carmakers could result in similar duties and derail plans.
“I think as a global company, you always have to face different challenges in different markets,” Xpeng vice-chairman and president Brian Gu said, adding the company was monitoring developments. “Right now, there’s nothing conclusive, but we are ready to deal with whatever comes our way.”
Last month, Xpeng formed a partnership with Malaysian automotive-to-property conglomerate Sime Darby to distribute its cars in Hong Kong. Sime Darby Motors will open a flagship store in the city to sell Xpeng cars in the third quarter.
“We believe innovation and technology play an important role in determining the future of the automotive industry,” said Raymond Lee, managing director for Greater China at Sime Darby Motors. “Xpeng stands at the forefront of innovation.”
The Hong Kong expansion marks a significant step in Xpeng’s “go-global 2.0 strategy”, under which the company plans to enter markets in Europe, Southeast Asia, the Middle East and Africa.
On Thursday, Xpeng said it had started marketing its cars in France, expanding the brand’s availability to 10 European countries. It also signed an exclusive partnership with Australian importer, distributor and retailer TrueEV this month.
China’s EV makers, mired in a prolonged price war and fierce competition at home, are increasingly looking overseas. Shenzhenheadquartered BYD, China’s top EV maker, wanted to set up a factory in Mexico, a senior executive said on Wednesday. Shanghai-based Nio announced its entry into Norway as early as 2021.
Although Xpeng’s closest rivals, Nio and Beijing-based Li Auto, have yet to unveil plans to enter Hong Kong, mainland firms have been testing the waters, showcasing models at the International MotorXpo Hong Kong last year.
Of the 6,611 EVs sold to individual buyers in Hong Kong in the first two months of the year, US carmaker Tesla was the topranked brand, accounting for more than a third of the market, followed by BYD at 23 per cent.
You always have to face different challenges in different markets BRIAN GU, VICE-CHAIRMAN AND PRESIDENT, XPENG