Xiaopeng Motors has officially entered the A-class car market in the 100000-150000 yuan range, which was previously dominated by joint venture fuel vehicles for many years.
On August 27th, Xiaopeng Motors held the "10 Years of Love Night" MONA M03 launch event. Xiaopeng Motors Chairman and CEO He Xiaopeng stated in his speech that no one can beat trends such as the disappearance of feature phones, the decline of fuel powered cars, and the rise of the AI wave. He made a prediction for the next 10 years that there may only be 7 mainstream Chinese car brands left, and annual sales of 1 million AI cars will be a ticket to the finals. Xiaopeng Motors will also have half of its sales coming from overseas.
At the media communication meeting after the press conference, He Xiaopeng joked that the judgment that there will only be 7 companies left in the next 10 years is "men's intuition". In his view, the industry will face relatively fierce competition in 2026 or 2027, and starting next year, the decline of fuel vehicles will further accelerate.
The latest release of Xiaopeng Motors' new model MONA M03 has a starting price of 119800 yuan, which is lower than the expectations of many industry insiders. The Xiaopeng MONA M03 offers three models: the 580 ultra long range Max version costs 155800 yuan, the 620 ultra long range version costs 129800 yuan, and the 515 long range version costs 119800 yuan.
Regarding this pricing system, He Xiaopeng responded by saying, "All pricing is ultimately profitable, and we will definitely consider the thoughts of customers in the current environment. Therefore, in pricing, we actually focus more on giving back to customers. We have now used a lot of technological innovation to control costs, such as investing all our efforts in energy management of the entire vehicle, which means running longer with fewer batteries, resulting in lower costs
He emphasized that the goal of Xiaopeng Motors is "good car quality, affordable price, and low cost".
For new car sales, Yang Guang, the product manager of Xiaopeng MONA M03, revealed that the goal of MONA M03 is to achieve monthly sales of over 10000 or even higher. However, He Xiaopeng added that the company will not make specific sales forecasts.
He Xiaopeng expects that the sales performance of Xiaopeng Motors will start to improve comprehensively after August this year. "Compared to many of our competitors, I think it's different that we see the future earlier, think about our organization, planning, and how to adjust in the future earlier. This adjustment is long-term
He Xiaopeng revealed that in the past four years, Didi and Xiaopeng have jointly invested 4 billion yuan in MONA M03, targeting a 200000 yuan model. He also mentioned that initially Didi and Xiaopeng had two different electronic and electrical architectures, and they had been solving the integration problem of the two systems for a long time.
MONA is actually a smart electric vehicle project acquired by Xiaopeng Motors from Didi Chuxing. On August 28th last year, Didi Chuxing and Xiaopeng Motors jointly announced a strategic cooperation. In this cooperation, Didi will sell assets and research and development capabilities related to intelligent electric vehicle projects to Xiaopeng. Xiaopeng Motors will build an A-class intelligent electric vehicle based on this, with the project code "MONA". The MONA M03 is the first A-class sedan in this series.
On August 28, 2023, Xiaopeng Motors signed a share purchase agreement with Didi Group to acquire Didi's intelligent car development business assets for a total consideration of HKD 5.835 billion. There is a bet agreement in the cooperation between the two parties. Xiaopeng Motors' initial payment is 3.25% of the listed company's shares, and Didi will need to complete SOP and annual sales targets in order to obtain further shares, with a maximum of 5%.
This acquisition is divided into four stages. In the first phase of the share purchase agreement, Xiaopeng Motors has issued 58.16 million shares of Class A common stock to Didi as the consideration for the initial delivery, accounting for approximately 3.25% of Xiaopeng Motors' shares, which was completed in November 2023; The second stage is to achieve SOP mass production, and Xiaopeng will issue 4.64 million shares to Didi for consideration.
On August 13th of this year, Xiaopeng Motors announced that the company has started mass production of the Xiaopeng MONA M03 vehicle on July 30th, 2024, and the SOP milestone under the share purchase agreement has been achieved.
The third and fourth stages thereafter are both related to MONA's sales volume. According to the agreement, the third phase is: if Didi sells 100000 vehicles in the transportation system every year, there will be additional consideration payment; The fourth stage is: if the annual sales volume reaches 180000 vehicles and this goal is achieved for two consecutive years, the highest transaction consideration can account for 5% of Xiaopeng Motors' Class A common stock after the transaction is completed.
In addition, He Xiaopeng also revealed in an interview that the cooperation with Volkswagen has brought unexpected joy, helping to reduce costs in the supply chain of all models, depending on the different models, including MONA M03. "This was also something we didn't expect at first. We thought it was only for the models we cooperated with that we would have (supply chain advantages), but we found that in fact, they all have them. I think the value is the greatest
On August 20th, Xiaopeng Motors (09868.HK, NYSE: XPEV) released its Q2 2024 financial report, which showed that Xiaopeng Motors achieved a revenue of 8.11 billion yuan in Q2, a year-on-year increase of 60.2%; The net loss was 1.28 billion yuan, compared to a net loss of 2.8 billion yuan in the same period last year. Sales data shows that Xiaopeng Motors delivered 11100 vehicles in July, a year-on-year increase of 1%.