XPeng's Rapid Growth and the Mona M03
XPeng, a prominent Chinese EV maker, has made significant strides in the EV market. It recently reported deliveries of 21,352 EVs in September alone, which contributes to an overall figure of nearly 100,000 vehicles produced in 2024 so far. Since the company first began shipping EVs in the first quarter of 2020, this remarkable growth reflects a steady rise in demand for Chinese EVs. XPeng's Q3 figures stood at 46,533 vehicles, surpassing the company’s guidance range of 41,000 to 45,000 units, marking an increase of over 16% year-on-year and a 54% surge compared to Q2.
A significant driver of this success is the launch of a new model, the XPeng Mona M03. This model alone accounted for over 10,000 units in its first full month of delivery, nearly half of XPeng’s overall shipments during that period.
The Mona M03 is seen as a game-changer due to its affordability, making EVs accessible to a broader market. Although the exact pricing in the UK remains to be determined )especially with various tariffs and taxes to be levied on Chinese cars by Western governments) if the price were directly translated, the entry-level XPeng Mona M03 could start at around £14,000.
Despite its competitive pricing, the Mona M03 does not skimp on features. The base model comes equipped with a 52kWh Lithium Iron Phosphate Battery, delivering a range of approximately 320 miles. Performance is also respectable, with a top speed of 96mph and acceleration from 0 to 60 in just over 7.5 seconds. Standard features include a panoramic sunroof, rain-sensing wipers, artificial leather seats, a 7-speaker audio system, a 5-year/75,000-mile warranty, and XPILOT, XPeng’s advanced driver-assistance system. For those seeking a more premium experience, a higher-end variant of the Mona M03 is reportedly in the works, with enhanced power, battery capacity, and features, potentially priced closer to £19,000.
The growing popularity of the Mona M03 has led XPeng to call for its supply chain to prepare for a potential “ramp-up” in production to meet burgeoning demand.
Zeekr's Record Quarter and UK Ambitions
Another Chinese EV brand, Zeekr, has reported strong growth, setting a new quarterly record with over 55,000 vehicles delivered in Q3. This represents an impressive year-on-year increase of over 50%. Zeekr has set a goal of delivering 230,000 EVs by the end of 2024, and the company’s recent product launches suggest they are well on their way to meeting this target.
Zeekr's new flagship vehicle, the Zeekr 7X, was launched on 20th September. This five-seat SUV aims to rival Tesla’s Model Y, offering similar features at a lower price. Although direct pricing in the UK is yet to be finalised due to potential tariffs and taxes, if the cost were directly converted from RMB to GBP, the Zeekr 7X would be priced at approximately £24,500. In China, it is marketed as being around 10% cheaper than a comparable Tesla Model Y. With competitive pricing and advanced technology, the Zeekr 7X could appeal to UK consumers who are looking for a cost-effective alternative to Tesla's popular SUV.
In addition to the Zeekr 7X, the company plans to introduce another model in Q4, known as the Zeekr Mix. This five-seater will have a Multi-Purpose Vehicle (MPV) design, targeting families and those who require more versatile use from their EV. While Zeekr’s entry into the European market has already begun with dealerships in the Netherlands, the brand has set its sights on opening in the UK by 2026. This timeline is driven by the need to establish a robust local support infrastructure and to fully understand and navigate any trade tariffs or other market regulations that may apply to imported EVs.
Worth bearing in mind that while Zeekr might not be familiar to many UK drivers, this is part of the Geely group – so will benefit from the group's knowledge and production of car brands like Volvo and Polestar. So, once they open in the UK, expect rapid growth.
The UK EV Market Outlook
These developments in China align with broader trends in the UK’s EV market. The UK is striving for a full transition to EVs, with policies supporting the phase-out of internal combustion engine (ICE) vehicles by 2035. In response, the market has already seen a steady increase in EV adoption, with registrations of battery-electric vehicles (BEVs) growing as infrastructure for charging improves across the country.
The entry of Chinese EV brands like XPeng and Zeekr into the UK market could potentially accelerate this transition by offering cost-effective alternatives to traditional European and American manufacturers. Although Western tariffs might increase the pricing of Chinese EVs compared to their home market costs, the affordability, range, and technology packed into these vehicles are likely to appeal to UK consumers looking for value-driven EV options. The presence of Chinese EV brands could also drive competition in the market, encouraging established players to innovate and price their offerings more competitively.
Conclusion
The rise of XPeng and Zeekr in China, with their record-breaking deliveries and strong growth trajectory, suggests a significant impact on the UK EV market in the coming years. With the UK’s drive towards an all-electric future, these Chinese EV makers may offer attractive, affordable options to British consumers. As the UK’s EV charging infrastructure continues to improve and policies supporting EV adoption become more robust, the market is set for increased competition, bringing more choice and potentially more affordable EV options for consumers. The entry of Chinese brands like XPeng and Zeekr may be just the catalyst needed to quicken the UK’s shift to an all-EV future. Given that we are living the reality of Brexit, let's hope that our independent Government ignores pressure to apply European tariffs – giving British drivers the best value EV options possible.
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