Chinese electric vehicle (EV) builder Xpeng will begin exporting its cars to Qatar as it steps up a global expansion effort amid crushing competition in the mainland China market.
The Guangzhou-based company signed an agreement with distributor Pioneer Motors on September 10, taking an initial step towards tapping consumer demand for premium electric cars in the Middle Eastern nation, according to a statement.
By the end of the year, drivers in Qatar will have the chance to buy several fully-electric Xpeng models with self-driving technology, including the P7 sedan and G6 SUV.
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“Entering the Qatar market is a strategic move for Xpeng,” said Alex Tang, the carmaker’s general manager of international markets. “It not only strengthens our presence in the Middle East but also complements our mission to provide smart, eco-friendly transport solutions on a global scale.”
Known for its autonomous driving technology, Xpeng has been aggressively expanding into markets outside mainland China as it pursues new growth engines.
Overseas sales accounted for 10 per cent of the company’s total sales of 30,207 vehicles in the second quarter of this year, it said during an earnings briefing last month.
At present, Xpeng is also selling its cars in markets like Thailand, France and Australia. The company also offers right-hand-drive cars to customers in Hong Kong.
A clutch of Chinese EV makers including BYD, the world’s largest EV builder, and start-up Hozon New Energy Automobile are reinforcing their go-global strategies amid a bruising discount war at home.
Representatives of Xpeng and Pioneer Motors shake hands at a signing ceremony for their distributorship agreement. Photo: Xpeng alt=Representatives of Xpeng and Pioneer Motors shake hands at a signing ceremony for their distributorship agreement. Photo: Xpeng>
At the end of July, Xpeng said it had expanded the use of its self-driving system to all cities in China in a bid to attract more buyers ahead of Tesla’s expected roll-out of its Full Self-Driving software. The Tesla software has not yet been approved for use in the country but is expected to enter testing in the first quarter of 2025.
The move made Xpeng the first mainland carmaker to offer a semi-autonomous driving system nationwide.
Xpeng cars fitted with the software are deemed semi-autonomous because drivers are still required to intervene under certain circumstances.
“For Xpeng, its go-global drive is still in a preliminary stage because it takes time for the company to build its image outside China,” said Gao Shen, an independent analyst in Shanghai. “But it has to quicken its pace of international expansion because of intense competition in China.”
Latin America, the Middle East and Southeast Asia are becoming key destinations among Chinese EV makers for exports and production facilities, according to a report released by ratings agency Moody’s in late August.
These regions had lower geopolitical risks, and their EV adoption was growing as their gross domestic product per capita increased and their climate change initiatives made progress, the report said.
In May, the US quadrupled tariffs on Chinese-made EVs, which now stand at 100 per cent.
Last month, the European Union said additional duties of 9 to 36.3 per cent would be applied to EVs imported from China, 11 months after it launched an anti-subsidy investigation into battery-powered cars assembled on the mainland.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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