XPeng President and Vice President Brian Gu is quick to praise the Tesla brand and recognize the electric vehicle maker’s “dominant” market share in China.
But in the same breath, the manager of the up-and-coming Chinese EV rival said his company and colleagues would quickly fill the competitive gap with Tesla.
“I think the Chinese players are catching up very quickly,” Gu told Yahoo Finance Live. “Our product, as well as some of the other products that are being introduced by leading vendors, are very good and have comparable specifications – and better features I think compared to Tesla.”
This point is not lost in the sales data of the main Chinese electric vehicle suppliers.
XPeng said this week in June shipments rose 617% year over year to 6,565. So far this year, deliveries have increased 459% to 30,738, driven by demand for XPeng’s P7 sedan and G3 SUV.
SHANGHAI, CHINA – APRIL 21: An XPeng Motor P7 electric vehicle is on display during the 19th Shanghai International Automobile Industry Exhibition, also known as Auto Shanghai 2021, at the National Exhibition and Convention Center (Shanghai) on April 21, 2021 in Shanghai, China issued . (Photo by Zhe Ji / Getty Images)
June deliveries at Nio rose 116% year-on-year to 8,083. For the quarter ended June 30th, Nio delivered 21,896 vehicles, a year-over-year growth rate of 112%.
At Li Auto, deliveries in June rose 321% year-on-year to 7,713. Deliveries in the second quarter improved by 166% to 17,575 compared to the previous year.
Tesla reportedly sold 33,155 cars in China in June, up 122% year over year.
“In the past few months, our growth has overtaken both the industry and Tesla in China. But I think it’s a long race because ultimately this market will not be dominated by one or two companies, likely to have large market share positions of 10% and more. That will probably be the trend and we hope to be one of those top players, “said Gu.
XPeng – which JPMorgan analysts estimate could occupy 8% of the Chinese electric car market by 2025 – currently has two models in the Chinese electric car market. In an increasingly dense market, they have become known for their technically pioneering infotainment systems and their autonomous technology.
The story goes on
The company’s third model, called the G3i, is expected to ship in September and targets smaller sedans like the Toyota Camry.
China’s electric vehicle maker stocks have cooled this year despite their strong sales. XPeng stocks are down 7% since the start of the year, while Nio is down 5%. Li Auto’s stock is down 11% year over year.
Brian Sozzi is an editor and Anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and further LinkedIn.
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