Chinese electric vehicle (EV) maker Xpeng has been making a name for itself overseas with its range of high-tech, zero-emission models. Growth has been notable, and as of Q2 2024, sales outside of China now account for more than 10% of the company’s total sales. Q2 was a solid quarter overall, with revenues soaring 60% year-on-year and deliveries growing by 30%. While it’s still reporting a net loss, that more than halved from CN¥2.8bn (US$392m) to CN¥1.28bn. But what management really wanted to talk about in the earnings call was AI.
“Looking ahead, I believe that the impact of AI on vehicles will be even more significant than that of electrification,” Xpeng’s Co-Founder, Chairman, and Chief Executive Officer Xiaopeng He told analysts in the earnings call. “AI will fundamentally change the driving and riding experience and will reshape business models in the mobility sector.” While other industry players are focussed on how software can redefine vehicles, Xpeng’s attention is on how AI will redefine them. Mr He has previously suggested that if AI penetrates 50% of a car’s capability, then many automakers will become obsolete. Determined to avoid this fate, Xpeng has put AI at the core of its ADAS and automated driving offering.
