XPeng Motors signed an agreement in April this year with the city of Wuhan in central China's Hubei province to build its third plant there. Now, the location of the plant has reportedly been decided.
The site for XPeng's production base in Wuhan was confirmed in late June, when it bought an industrial site in Wuhan Economic and Technological Development Zone for RMB 212.51 million ($32.9 million), a WeChat account owned by Hubei Daily reported on Wednesday.
The site is located east of Sanjiang Road and south of Happy Garden Road on Shamao Street in Wuhan, adjacent to the Geely Lotus Wuhan plant, according to the report.
In April this year, XPeng signed an agreement with the Wuhan Economic and Technological Development Zone Management Committee to build its third production base there after Zhaoqing and Guangzhou in southern China's Guangdong province.
The project, which will cover an area of about 1,100 acres, will build a complete vehicle and powertrain plant and an R&D center and is expected to go into operation in 2023 with a planned annual production capacity of 100,000 units.
At the end of April, XPeng established a company in Wuhan with a registered capital of RMB 2.5 billion.
XPeng has already started recruiting employees for the Wuhan production base, offering positions including head of stamping equipment section, head of painting process section, head of final assembly process section and other manufacturing and process positions under recruitment.
XPeng's three plants will have a total design capacity of 300,000 units, and with modest modifications and increased shifts, could achieve a peak capacity of nearly 500,000 units, XPeng CEO He Xiaopeng has said.
XPeng plans to use 10 percent of the funds raised from the Hong Kong IPO (about $177.4 million) for the construction of the Guangzhou and Wuhan production bases, according to its prospectus.