XPeng and NIO: Their Approaches to the Market
Although their sales numbers are far from enormous, their strategies may provide huge growth opportunities
Two Chinese electric vehicle manufactures have announced their October sales numbers, and on a percentage basis they are rather astonishing.
XPeng Inc. said that compared to last October, its sales are up 229%.
The XPeng G8 SUV and P7 sedan. (Image: XPeng)
NIO announced that it is up for the same period by 100.1%.
How many cars did each of these companies deliver in October?
For the year so far, XPeng has delivered 17,117 vehicles.
NIO has delivered 31,430.
XPeng has two models: the P7 sports sedan and the G3, a compact SUV.
NIO has three models. There is a five-seat SUV, the ES6, a six-/seven-seat SUV, the ES8, and a five-seat coupe SUV, the EC6.
XPeng describes its vehicles as being “smart.” As does NIO.
What Do They Do?
XPeng describes itself by saying it “designs, develops, manufactures and markets Smart EVs that appeal to the large and growing base of technology-savvy middle-class consumers in China.”
“NIO,” according to its descriptor, “designs, jointly manufactures and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving and artificial intelligence.”
Why This Is Clever
According to an article by the OECD, “By the end of 2030, China’s middle class will grow by approximately 45% and add 370 million people for a total of almost 1.2 billion.”
Seems like the appropriate place to focus one’s products.
NIO “aims to build a community starting with smart EVs to share joy and grow together with users.”
Community transcends transportation devices.
Sounds like more than just moving sheet metal. Note how more Western OEMs are focusing on connecting vehicles to homes and to retail. Data is going to become extremely valuable. A company that is working on building a community and working on AI is clearing thinking in these terms.
So here’s the question: Even with these comparatively small sales numbers, are XPeng and NIO OEMs to watch or are they going to disappear in an ocean of EV startups?
Chinese electric-car startup Nio Inc. is forming a manufacturing joint venture with Beijing E-Town International Investment and Development Co., which is investing 10 billion yuan ($1.5 billion) in the business.
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