By Michael Elkins
Chinese electric vehicle maker Xpeng (NYSE:XPEV) is up 11.09% in pre-market trading on Monday after the company unveiled its next-generation end-to-end integrated technology architecture SEPA2.0 over the weekend.
XPeng’s SEPA 2.0 platform is expected to reduce costs of powertrain systems, including batteries, by 25% by the end of 2024. Furthermore, the costs of the company’s intelligent driving systems are projected to come down by 50%, Brian Gu, Xpeng's president, told reporters Sunday.
He said that these cost reductions would give Xpeng an edge against its rivals in an increasingly competitive market.
"Since early this year..., a number of players have been launching aggressive price cuts," said Gu.
"The focus on the capability of offering attractive products at affordable prices becomes even more important."
XPeng’s G6 Ultra Smart Coupe SUV will be the first model to be built on the SEPA 2.0 platform. The G6 SUV will be unveiled at the Shanghai auto show commencing on Tuesday.
Xpeng's Chief Executive He Xiaopeng also said on Sunday that an automaker needs to achieve annual sales of 3 million units globally to get a chance to survive beyond a decade.
Xpeng's car sales slumped nearly 50% in the first quarter of the year, underperforming the overall EV segment in China.