SHANGHAI, April 16 (Reuters) – China's electrical car (EV) maker Xpeng (9868.HK) unveiled on Sunday a brand new platform it developed in-house for making automobiles, which it stated will cut back the event and manufacturing prices for its firm's upcoming fashions.
The Sensible Electrical Platform Structure (SEPA) 2.0 will assist Xpeng to cut back prices of powertrain methods together with batteries by 25% and people of clever driving system by 50% by the top of 2024, Brian Gu, Xpeng's president, instructed reporters in Shanghai on Sunday.
He stated that these value reductions would give Xpeng an edge towards its rivals in an more and more aggressive market.
“Since early this yr…, quite a lot of gamers have been launching aggressive worth cuts,” stated Gu.
“The deal with the aptitude of providing engaging merchandise at inexpensive costs turns into much more essential.”
Xpeng will construct its G6 SUV, which can debut on the Shanghai auto present beginning on Tuesday, as the primary mannequin to be constructed on the SEPA 2.0, in line with the corporate.
The structure consists of entrance and rear built-in aluminum die casting applied sciences and integrating battery packs into the automobile physique, which can enhance the manufacturing effectivity and cut back the burden of the automobiles, the corporate added.
Xpeng's rival Tesla (TSLA.O) makes use of huge casting machines, also called gigapresses, to make massive single items of auto underbodies. It has since 2020 been manufacturing its Mannequin Y with a single-piece rear casting half and in 2022 began utilizing a front-casting half in its Texas plant.
In January, Tesla minimize costs globally together with China to spur demand whereas Chief Govt Officer Elon Musk stated in March that demand at scale was restricted by affordability.
Greater than 40 auto manufacturers in China have adopted Tesla and joined what analysts referred to as a worth warfare, slashing costs of their best-selling fashions to defend market share.
Xpeng's Chief Govt He Xiaopeng additionally stated on Sunday that an automaker wants to realize annual gross sales of three million items globally to get an opportunity to outlive past a decade.
Xpeng's automobile gross sales slumped practically 50% within the first quarter of the yr, underperforming the general EV phase in China.
Reporting by Zhang Yan and Brenda Goh; Modifying by Emelia Sithole-Matarise
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