Chinese EV Maker XPeng Setting Up Third Plant to Meet Demand

by akoloy

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(Bloomberg) — XPeng Inc. is establishing its third manufacturing base within the metropolis of Wuhan because the Chinese carmaker faucets into surging demand on this planet’s largest marketplace for electrical autos.

The U.S.-listed agency has tied up with the native provincial authorities to construct a producing base with annual capability of 100,000 items, in response to a press release Thursday. XPeng didn’t disclose a timeline for commencing manufacturing or proposed funding for the brand new plant, which may also home powertrain and research-and-development amenities.

“Smart EVs are booming in popularity in China,” Chairman He Xiaopeng stated within the assertion. “Expanding our capacity in key hubs like Wuhan plays a critical role.”

The new base, introduced months after XPeng stated it was constructing a similar-sized plant in Guangzhou, underscores the corporate’s daring guess on Chinese shoppers’ burgeoning urge for food for EVs after a file of greater than 1.3 million items have been offered final 12 months. China’s new-energy car gross sales might climb 54% in 2021 in comparison with 24% development final 12 months, Bloomberg Intelligence analysts wrote in a March 26 report.

XPeng, based in 2014, has an operational facility in Zhaoqing in Guangdong province and introduced its second plant in September in Guangzhou, which is more likely to begin manufacturing by finish of 2022. Each of those crops could make 100,000 items yearly, implying XPeng is seeking to treble capability within the coming years.

Xpeng Tops Up Coffers With $77 Million Local Government Funding

The firm delivered 13,340 items of its present two fashions within the first quarter, marking a rise of 487% over the identical interval final 12 months because it recovered from the pandemic-induced gross sales stoop.

Xpeng can be contemplating a second itemizing in Hong Kong as investor curiosity in cleaner vehicles soars. It raised $1.5 billion in August final 12 months when it listed within the U.S. and one other $900 million earlier than its preliminary public providing.

©2021 Bloomberg L.P.

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