The upcoming G6 will need to be successful to make Xpeng to be truly relevant again in the market, said Edison Yu's team.
(Xpeng G6 shown in a regulatory filing.)
Xpeng (NYSE: XPEV) will officially debut the G6 at next month's Shanghai auto show, and in Deutsche Bank's view, the new SUV's sales performance will be crucial for the electric vehicle maker.
The upcoming G6 will be the swing factor and the model will need to be successful to make Xpeng truly relevant in the market again, Deutsche Bank analyst Edison Yu's team said in a research note sent to investors on Wednesday.
Xpeng management said during an earnings call earlier this month that the G6 will be unveiled at the Shanghai auto show and will be officially launched and delivered by the end of the second quarter. The Shanghai auto show will be held from April 18 to April 27.
The model is a new energy SUV with a price range of RMB 200,000 ($29,250) - 300,000 and a monthly sales target of 2-3 times that of the P7, Xpeng's management said.
That means at least 5,000 units per month of Xpeng G6 sales, based on the trailing 6-month average, Yu's team noted.
Xpeng will likely price the G6 similarly to the Tesla Model Y, hoping to attract consumers with its sleeker design and updated interior, the team said.
With increased G6 production, Xpeng management believes total monthly deliveries could reach 15,000 units at some point in the third quarter, the team noted.
"This seems achievable and we model Xpeng reaching this level in Sep," Yu's team wrote.
Xpeng management said during a previous earnings call on August 23, 2022, that the company will launch a B-segment car in the first half of 2023 that will compete with the Tesla Model Y.
That model is the G6, and a regulatory filing earlier this month showed that it will come in three versions according to powertrain, including two single-motor versions as well as a dual-motor version. Its battery pack will have both lithium iron phosphate and lithium ternary batteries available.
The Xpeng G6 measures 4,753 mm in length, 1,920 mm in width and 1,650 mm in height, with a wheelbase of 2,890 mm. For comparison, the Tesla Model Y measures 4,750 mm in length, 1,921 mm in width and 1,624 mm in height, with a wheelbase of 2,890 mm.
The G6 will have a significantly improved range that will exceed expectations and will have much more interior space than similar offerings from competitors, Xpeng chairman and CEO He Xiaopeng said during the earnings call earlier this month.
($1 = RMB 6.8374)
Xpeng Q4 earnings call: New order intake up 100% in Feb from Jan
Related posts on CnEVPost
