Xpeng seeks to be first major Chinese EV maker to launch right-hand drive cars as it targets Hong Kong market

Xpeng will offer a vehicle distinct from existing electric cars in Hong Kong that will appeal to local customers, says president Brian Gu
It marks the first move by a Chinese maker of premium EVs to tap the Hong Kong market with a right-hand drive model

Electric & new energy vehicles

Daniel Renin Shanghai

Published: 7:00pm, 20 Jun 2023

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Chinese electric vehicle (EV) start-up Xpeng is setting its sights on Hong Kong with plans to launch a right-hand drive model in the city next year to compete against well established rivals like Tesla.

Brian Gu, vice-chairman and president of the Guangzhou-based carmaker, said Xpeng would offer a vehicle distinct from existing electric cars on the streets of Hong Kong that will appeal to local customers with its advanced technologies and unique design, reinforcing its go-global strategy.

“By the time we enter, we will probably face pretty significant competition,” he said during a keynote session at the South China Morning Post’s China Conference: Hong Kong 2023. “But we do feel that our products will have a different appeal. We want to make sure that the technologies we develop in China can be made available in Hong Kong as well.”

Gu said the right-hand drive model will probably hit the Hong Kong market in late 2024.

It marks the first move by one of China’s major EV makers to tap the Hong Kong market with a right-hand drive model.

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Xpeng’s domestic rivals – Nio in Shanghai and Beijing-headquartered Li Auto – have yet to unveil plans to sell battery-powered vehicles in Hong Kong.

The three companies are viewed as China’s best response to US carmaker Tesla. They all assemble electric cars equipped with preliminary autonomous driving technology, sophisticated in-car entertainment systems and high-performance batteries.

They now build only left-hand drive models, most of which are sold on the mainland.

“Right-hand driving is a large segment of the [whole EV] market,” Gu said, adding that Xpeng is determined to build itself into a strong global EV company.

At the end of 2020, the company began exporting its electric cars to Europe, hoping to take on Tesla and other foreign rivals in developed economies. Its overseas sales numbers are not made public.

Gu said some units of it two new models, the G9 sport-utility vehicle (SUVs) and the P7 sports sedan, would be handed to European customers in two weeks.

“Chinese EV makers are strong contenders in the international market because they have good products and offer reasonable prices,” said David Zhang, a visiting professor at Huanghe Science and Technology College. “In the premium segment, Chinese companies need to develop some new models based on local drivers’ demand.”

On Monday, market research firm Canalys published a report which predicted EV exports by Chinese carmakers could reach 1.3 million units this year, almost double the 679,000 cars shipped last year as reported by the China Association of Automobile Manufacturers (CAAM).

Xpeng is known for its strength in developing self-driving technology that uses of lidar (light detection and ranging) sensors.

Last week, some cars made by Xpeng were allowed to drive themselves through Beijing’s streets after its X NGP (Navigation Guided Pilot) software, which is similar to Tesla’s Full Self Driving (FSD) system, received the go-ahead from local authorities to become operational.

It was the first Chinese carmaker to gain approval for its semi-autonomous driving technology from Beijing’s transport authorities.

The system had already been approved in Shanghai, Guangzhou and Shenzhen.

Gu said Xpeng would cut the number of lidars used in Xpeng cars in the future to reduce production costs and make autonomous driving tech more affordable to drivers around the world.

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