Shanghai, April 16 (Us): Chinese electric vehicle (EV) maker Xpeng.9868.HK) on Sunday unveiled a new platform it developed internally for vehicle manufacturing, which it said will reduce development and manufacturing costs for the company’s upcoming models.
According to Reuters, the Smart Electric Platform Architecture (SEPA) 2.0 will help Xpeng cut costs for powertrain systems including batteries by 25% and those for the intelligent drive system by 50% by the end of 2024, according to Brian Guo, president of Xpeng. , to reporters. in Shanghai on Sunday.
He said these cost reductions will give Xpeng an advantage against its rivals in an increasingly competitive market.
“Since early this year…, a number of players have started massive price cuts,” said Gu.
“Focusing on being able to offer attractive products at reasonable prices becomes more important.”
Xpeng will build its G6 SUV, which will debut at the Shanghai Auto Show starting Tuesday, as the first model to be built on SEPA 2.0, according to the company.
The company added that the architecture includes front and rear integrated aluminum casting technologies and the integration of battery packs into the bodywork, which will improve manufacturing efficiency and reduce vehicle weight.
Xpeng’s rival Tesla Inc. (TSLA.O) uses huge molding machines, also known as gigapresses, to make large single pieces of vehicle undercarriage. Since 2020 it has been manufacturing its Model Y with a one-piece rear casting, and in 2022 it has started using the front casting at its Texas plant.
In January, Tesla cut prices globally including in China to stimulate demand while CEO Elon Musk said in March that widespread demand was limited by affordability.
More than 40 auto brands in China have followed Tesla and joined what analysts have called a price war, slashing prices of its best-selling models to defend market share.
Xpeng CEO He Xiaopeng said on Sunday that the automaker needs to achieve annual sales of 3 million units globally to have a chance at survival after a decade.
Xpeng’s vehicle sales fell nearly 50% in the first quarter of the year, underperforming China’s overall electric vehicle segment.