The improve, which is because of be accomplished by the top of February, is aimed toward getting ready for a brand new mannequin and boosting the plant’s capability.
(Picture credit score: Xpeng)
Xpeng (NYSE: XPEV) will improve the manufacturing strains at certainly one of its two factories, a transfer that’s designed to organize for a brand new mannequin however may have an effect on short-term deliveries.
Xpeng has launched an improve venture at its Zhaoqing plant in Guangdong province, for which it plans to take a position greater than RMB 100 million ($13.9 million), involving manufacturing strains and logistics gear within the stamping, welding, portray and closing meeting workshops, in accordance with a press release in the present day.
The work will final about 20 days, with all of the renovation tasks anticipated to be accomplished by February 9, and the general manufacturing line commissioning accomplished by the top of February.
The improve is aimed toward getting ready for the launch of a brand new mannequin and boosting the plant’s capability, in accordance with Xpeng.
Xpeng did not say how a lot the plant’s capability will probably be expanded, however stated the brand new mannequin is anticipated to enter manufacturing throughout the 12 months.
The plant, which is Xpeng’s first, is situated in Zhaoqing Hello-Tech Zone and went into manufacturing in Might 2020.
(Xpeng Zhaoqing plant. Picture credit score: Xpeng)
Xpeng was based in 2014 and launched its first mannequin, the G3 SUV, in September 2016. The mannequin was initially made by Haima Motor and has been produced by Xpeng’s personal manufacturing facility for the previous few years.
In August 2021, Xpeng initiated its first main improve to its Zhaoqing plant, which elevated annual manufacturing capability from 100,000 to 200,000 items.
Along with the Zhaoqing plant, Xpeng has one other plant in Guangzhou, town the place it’s headquartered. The plant went into operation in early 2023 and was designed to have an annual capability of 120,000 automobiles.
Xpeng’s present fashions on sale are the G3i, P5, P7, G9, and X9, the primary three of that are produced on the Zhaoqing plant and the final two on the Guangzhou plant.
The corporate had introduced the launch of a plant venture in Wuhan, Hubei province in July 2021, however had not launched any progress on the plant up to now two years.
By 2025, Xpeng’s factories in Zhaoqing and Guangzhou, in addition to quite a few factories within the strategy planning stage, will probably be tailored to the SEPA (Sensible Electrical Platform Structure) 2.0 structure, fueling capability and gross sales development, it stated in the present day.
SEPA 2.0 is Xpeng’s next-generation automobile expertise structure unveiled in April 2023, and the G6 SUV is the primary mannequin to be constructed on it.
On December 21, native media outlet Jiemian reported that Xpeng plans to discontinue the G3 sequence of SUVs and should design a brand new product to switch the road.
Xpeng later confirmed the report, saying it was a call primarily based on the corporate’s long-term planning, as a way to enable it to focus extra on advancing its future development technique.
Xpeng delivered 20,115 automobiles in December, marking the third consecutive month above the 20,000-unit mark.
Nevertheless, it and its different main friends entered 2024 with weak deliveries, as China’s auto market entered a gradual season at the beginning of the 12 months.
From January 1-21, Xpeng automobiles had 4,600 insured registrations in China, as reported by CnEVPost earlier this week.
Notably, Xpeng’s deliberate manufacturing line modifications and commissioning will cowl the Chinese language New 12 months vacation, which is usually the slowest time of the 12 months for automobile gross sales within the Chinese language market.
The upcoming Lunar New 12 months vacation runs from February 10 to February 18, and February 4 and February 18 will probably be work days, albeit Sundays.
Xpeng has stable new fashions pipeline for 2024-2025, says BofA