Xpeng Motors Announces Major Strategic Shift!
On March 25, Xpeng Motors, which has primarily focused on pure electric vehicles, announced a significant strategic adjustment, transitioning towards a dual powertrain model of “pure electric + range extender.” According to reports from various media outlets, including 36Kr, Xpeng Motors is currently planning to launch at least five range extender models, which will include both sedans and SUVs, such as the range extender versions of the P7 and G6.
This strategic move signifies Xpeng Motors’ shift from pure electric vehicles to a “range extender + pure electric” dual powertrain approach, aiming to align with market trends and meet the diverse needs of consumers for new energy vehicles.
The first range extender model will be developed based on the X9 platform and is scheduled for mass production in the second half of 2025. Subsequent models will cover multiple platforms including E, F, and H, with launches planned for 2026 and 2027. In the future, most of Xpeng’s new vehicles will offer both range extender and pure electric versions.
Xpeng’s range extender vehicles will feature the newly released “Kunpeng Super Electric System,” which is based on an 800V high-voltage silicon carbide platform. This system includes a 5C ultra-fast AI battery, a silent range extender (operating at just 1dB), and an AI power management system. The pure electric range can reach 430 kilometers, while the total range exceeds 1400 kilometers, boasting industry-leading energy replenishment efficiency and endurance.
In recent years, the market demand for range extender electric vehicles has been on the rise. From 2021 to 2023, the growth rates for range extender models were 206%, 116%, and 173% respectively. Additionally, from January to September 2024, sales of new energy vehicles increased by 32.5% year-on-year, with plug-in hybrid range extender models seeing a remarkable growth of 84.2%, four times that of pure electric models. The range extender market is expected to experience a significant boom in 2024, with companies like Li Auto, AITO, and Leapmotor continuously demonstrating the market competitiveness of range extender models. Faced with such strong market growth, Xpeng Motors is understandably eager to adapt.
On November 6, 2024, during the Xpeng AI Technology Day, the company officially unveiled the Kunpeng Super Electric System. He Xiaopeng, Chairman and CEO of Xpeng Motors, explained the rationale behind entering the range extender segment: “To expand into global markets, our company needs a new energy replenishment method, which includes range extender hybrids. Furthermore, to achieve a driving range of over 1000 kilometers, we need to explore power sources beyond pure electric.” According to He Xiaopeng, research indicates that range extender and pure electric vehicles cater to two distinct user needs, with a difference of 90% between the two, especially in other global markets. “Xpeng needs to be well-prepared for entry into different countries and regions, offering more convenient and universal energy replenishment solutions,” he noted.
Objectively speaking, transitioning from the pure electric segment to the range extender segment is technically easier than moving in the opposite direction. Xpeng Motors has accumulated extensive technology and experience in the pure electric field, allowing for a smoother application in the development of range extender models, facilitating a seamless transition and integration of technologies. Compared to pure electric vehicles, range extender models also have certain advantages in battery costs.
Currently, with the exception of Tesla, most automakers focusing solely on pure electric vehicles have not yet achieved profitability. In contrast, companies like Li Auto and Seres AITO, which primarily offer plug-in hybrid models, have reported profitability in the past year. For Xpeng Motors, which is still in the red, launching cost-effective range extender models could help reduce production costs, improve profitability, and enhance its financial standing.
Moreover, the “Opinions from the Central Committee of the Communist Party of China and the State Council on Accelerating Economic and Social Development and Comprehensive Green Transformation,” issued in July 2024, indicates that by 2035, new energy vehicles will become the mainstream of new vehicle sales, with plug-in hybrid models included. This creates a favorable policy environment for Xpeng Motors to expand its range extender offerings.
