According to the China Passenger Car Association, sales of electric vehicles (EV) in China have slowed to 18.2 percent in the first two months of this year. This figure is down from 20.8 percent of the total in 2023.

The price war carried out by a number of domestic manufacturers, which also started from Tesla in China, did not have a significant impact on increasing demand for EVs.

However, China's electric car manufacturer, Xpeng realizes that the current electric vehicle competition will be even tighter.

Launching Reuters, March 17, Xpeng finally announced plans to launch a more affordable brand. This indicates their move into a very competitive market segment.

According to Chairman and CEO Xpeng He Xiaopeng, the model of this new brand will be priced between 100,000 yuan to 150,000 yuan or equivalent to Rp220 million- Rp330 million and will be launched within the next month. This information was conveyed by He through the company's official WeChat account after attending an industrial event in Beijing.

In comparison, currently premium electric car manufacturers generally set their car selling prices at around 200,000-300,000 yuan or RP440 million-661 million).

It is known, since the beginning of the year the competition in the Chinese electric vehicle market has heated up. The main players are racing to lower prices, from Tesla as well as BYD as market leader.

Xpeng said it would gradually introduce new models under the brand, which they have yet to name. It is also mentioned that each model will have a different level of intelligent driving ability. Xpeng claims this new brand aims to create the "first car with AI assistance for young people".