South China Morning Post Reports on Xpeng's Entry into the Hybrid Car Market

South China Morning Post Highlights Xpeng's Hybrid Strategy

Xpeng Motors is stirring up competition in China’s electric vehicle (EV) market by introducing a hybrid system to take on rivals such as Li Auto and Zeekr, following a shift in consumer preference to cheaper cars with extended driving range.

The company unveiled a new extended range charging system for its EVs, known as the Kunpeng Super Electric System, during its corporate AI Day in Guangzhou. This new system aims to set a benchmark in the industry, capable of achieving more than 1,400km and a pure-electric range of 430km, as claimed by Xpeng.

Xpeng's Global Ambitions and Hybrid Features

Founder and CEO He Xiaopeng stated at the event, “The Kunpeng system will accelerate Xpeng’s globalization process by addressing the limitations of charging infrastructure overseas.” The plan includes expanding to around 60 countries by the end of 2025 and establishing over 300 overseas sales and service centers.

• Extended-range EVs (EREVs) function as plug-in hybrids, equipped with an internal combustion engine that generates additional power to charge the battery.
• Sales of plug-in hybrids in mainland China jumped to 361,000 units in September, indicating increasing acceptance.
• EREVs are about 10% cheaper than all-electric alternatives, making them more attractive to consumers.

Competition and Market Trends

With sales of pure EVs rising, the trend towards hybrids is apparent globally, as evidenced by reports from the International Energy Agency showing plug-in hybrids outselling pure EVs in key markets.

Xpeng's entry into the hybrid market could be a significant leverage point for driving sales as the infrastructure for pure EVs in some overseas markets may not be robust enough yet.