On Wednesday, Chinese smart electric vehicle company Xpeng announced that it had delivered 7,214 Smart EVs in the month of August, representing a 172% increase year-over-year. With its increased production output at the Zhaoqing factory, Xpeng now expects its monthly delivery volume to hit 15,000 in Q4, according to He Xiaopeng, Xpeng’s CEO.
Deliveries of the P7 achieved a record month in August and a 209% increase year-over-year. By the end of the second quarter of this year, company’s proprietary software, XPilot 3.0, could be found in about 25% of the vehicles produced. Among the nearly 35 thousand P7s that have been delivered as of the end of June 2021, close to 8,000 units had been equipped with XPilot 3.0.
In June, Xpeng’s highway NGP mileage penetration rate exceeded 60%, showing that the feature assisted its customers in driving for around 1.45 million kilometers in total.
In August, the company began to transition production for its G3 SUV to the new G3i, a mid-cycle facelift version of the G3, to its wholly-owned Zhaoqing Smart EV Manufacturing Base. The company expects to start deliveries of the G3i to start in September.
He Xiaopeng said supply chain challenges, particularly those pertaining to chip shortages, remain the biggest production hurdle that Xpeng is facing. He also shared some predictions for the future.
First, in China, vehicles priced between 150,000 yuan ($23,210) and 400,000 yuan will occupy the largest portion in the EV market and show the fastest growth rate. Second, higher level / advanced driving assistance system will trigger qualitative changes in users’ mobility experience.
Starting from 2023, Xpeng plans to launch at least two or three new vehicle models every year. The company will also broaden its primary price range in China from between 150,000 and 300,000 RMB to between 150,000 and 400,000 RMB.
As of the end of the second quarter of 2021, Xpeng’s R&D headcount exceeded 3,000 people, but by the end of 2021, it will increase that number to more than 4,500. The company estimates that the total number of engineers working in Xpeng’s autonomous driving software, hardware and relative supporting infrastructure teams, will exceed 1,500 by the end of this year.