Chinese EV start-up Xpeng to build factory in Wuhan less than a year after putting first plant to work, as EV demand soars
- Plant in Wuhan will have the capacity to assemble 100,000 EVs a year
- Planning ahead is not wrong for leading Chinese EV firms, because a sales jump is expected, analyst says
“We have a long-term strategic road map to embrace the (EV) sector’s transformation,” said He Xiaopeng, the company’s co-founder and chief executive. “Expanding our capacity in key hubs like Wuhan plays a critical role.”
“Planning ahead to add production capacity is not wrong for China’s leading smart EV companies, because a sales jump is expected,” said Ivan Li, an asset manager at Shanghai-based Loyal Wealth Management. “EV start-ups will need to expand their capacity in line with market demand to avoid any unnecessary waste of investment.”
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Vehicle number 10,000 rolls off the assembly line for Chinese electric carmaker XPeng
Swiss bank UBS predicted last month that China’s new-energy vehicle sales would hit 6.6 million units in 2025, rising nearly six-fold from the 1.17 million vehicles delivered last year.