Xpeng's first EREV model is under development, internally codenamed G01, and will primarily target the RMB 200,000 ($28,190) plus price band, according to local media.
Xpeng (NYSE: XPEV) is reportedly working on a hybrid model, leaving its local counterpart Nio (NYSE: NIO) as pretty much the only new car maker still insisting on offering only battery electric vehicle (BEV) models.
Xpeng's extended-range electric vehicle (EREV) program has become clear, with the selection of suppliers for its core components completed in the first half of this year, according to a report in local media outlet 36kr today.
The company's first EREV model is under development, with mass production expected in the second half of 2025, according to the report.
The model will be a large SUV (sport utility vehicle), with the internal project codename G01, and will be launched no later than the fourth quarter of next year, 36kr said, citing a source familiar with the matter.
The EREV, which will be developed using the G9 as a prototype, will primarily target the price band of RMB 200,000 yuan ($28,190) and above, and will be mass-produced at Xpeng's second factory in Guangzhou, where it is headquartered, according to the report.
Xpeng's chosen range-extender supplier for its first EREV model is Harbin Dongan Auto Engine Co Ltd, according to 36kr. Dongan is also a range-extender supplier for Li Auto (NASDAQ: LI).
When contacted by 36kr, Xpeng said it will share more information at the 2024 Tech Day event on October 24.
Most of China's earliest EV startups targeted the BEV segment at the very beginning, but experience over the past few years has shown that consumers prefer hybrids without range anxiety.
In addition, Li Auto's success in the EREV market is more proof that such models are more accepted.
New Chinese car makers, including Leapmotor and Neta Auto, which originally offered only BEVs, have all begun to offer additional EREVs in the past few years.
Zeekr will launch a flagship hybrid SUV in the second half of 2025, Andy An, president of Geely Holding Group and CEO of Zeekr, said on August 21 in Geely Automobile Holdings' 2024 interim results announcement.
This means that yet another emerging Chinese EV maker that currently only offers BEVs will start offering hybrid models.
Responding to questions from CnEVPost at a media roundtable in Guangzhou on August 26, a day before the official launch of the Mona M03, Xpeng's management said the company is keeping an open mind to all forms of power.
Xpeng has been researching options for EREVs for some time, with some work starting 2 years ago, the 36kr report said, citing an employee of the EV maker.
The company's management may not have made up its mind to launch EREVs before, but now the attitude is becoming clearer, the report said.
Xpeng acknowledged that user demand exists for hybrid models, including EREV models, but owners of those models are likely to switch to BEVs in their next vehicle, the company's management said in a May 21 earnings call.
Xpeng's chairman and CEO He Xiaopeng's request to its team is not to adopt a transitional EREV solution, but to have industry-leading technology in place when such a model are launched, 36kr said, citing a person familiar with the matter.
As of now, Nio is pretty much the only Chinese automaker still holding on to the BEV camp, with the company relying on replenishment facilities such as battery swap stations to maintain monthly sales of 20,000 units this year, the report noted.
($1 = RMB 7.0946)
Xpeng asks suppliers to boost capacity as Mona M03 orders exceed 2,000 units per day
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