Xpeng Motors reveals plans for Sweden, Netherlands & Denmark [Update]

In October 2021, Xpeng Motors gave thrust to its overseas operations, launching the P7 in Norway, its only overseas market, where it was riding on its sole offering, the G3. In 2022, the company will enter more European markets to boost exports.

During Xpeng Motors’ Q3 2021 earnings conference call, He Xiaopeng, the company’s co-founder, Chairman, and CEO, revealed that it plans to enter at least three new markets in 2022 – Sweden, Denmark, and the Netherlands. The company will try to expand its presence in Norway as well.

Xpeng Motors enters Sweden

Xpeng Motors has begun operations in Sweden. On 25 November 2021, a week after Xpeng Motors launched the brand in the country, it announced plans to open the first Swedish Xpeng Experience Centre in Q1 2022 (January-March 2022). The company has chosen the Westfield Mall of Scandinavia as its first retail location in Sweden. Nordic region manager Elvis Cheng said that there’s no better place to reach many people in the country. The company will provide test drives of models at the location.

Xpeng P7 Westfield Mall of Scandinavia
Located in Solna, Stockholm, the Westfield Mall of Scandinavia is Scandinavia’s largest shopping centre. Image Source: Xpeng Motors

Xpeng Motors Netherlands launch

After revealing in October 2021 that it’s entering the Netherlands next year, Xpeng Motors released a more precise launch timeline. In a Christmas greeting sent out to the media, the company confirmed that its first showrooms in the country will be open in the first quarter of the year (January-March 2022), AutoWeek reported. The first Xpeng Motors retail outlet in the Netherlands will be an Xpeng Experience Centre boutique showroom. The Dutch publication said the company would open it in or around Amsterdam and launch the P7 as the first model. The G3i and G9 could arrive later.

Xpeng setting up new plants to expand its reach

Xpeng Motors currently builds EVs in Zhaoqing, China, but it is setting up two new domestic factories in Guangzhou and Wuhan. When the new factories are up and running, the annual production capacity will be more than 400,000 units. With double-shift production at these plants, it will have the potential to roll out even up to 600,000 electric cars per year.

He Xiaopeng had said during the Q3 2021 earnings conference call that the company expects to deliver 34,500 to 36,500 units in Q4 2021. At the end of November 2021, Xpeng Motors’ YTD deliveries stood at 82,155 units. Its cumulative deliveries had surpassed the 100,000-unit milestone just in October 2021, and now, they have reached 121,953 units. The Chinese automaker is still far from achieving the high production levels its three factories will allow it. However, scaling up exports to Europe could significantly improve plant capacity utilization.

Xpeng G9 rear three quarters
The Xpeng G9 (arriving next year on the market) was the first Xpeng model to be developed from the ground up with the global market requirements. Image: Xpeng

Xpeng Motors wants a good foundation for its international expansion in the software and hardware R&D development, data protection, team and organization structure revamp, and its safety by 2022. “You would see us doing more restructuring and exploration in terms of our product, technology, and also our organization,” Xiaopeng said. “So sales right now is not our priority in the international market,” he added.

Xpeng Motors may accelerate global expansion significantly from 2023 when it has more models designed for international sales from the outset. The company has started conceiving and developing EVs that also suit international markets, and the Xpeng G9 is the first example.