XPeng Aims to Expand Global Presence to 60 Markets by 2025

XPeng Motors, the Chinese electric vehicle manufacturer, has announced plans to expand its international presence to 60 markets by 2025, doubling its current footprint of around 30 countries and regions. XPeng Chairman and CEO He Xiaopeng made the statement during an event in Guangzhou, where the company officially launched the global shipments of its flagship seven-seat multipurpose vehicle, the X9. A total of 300 right-hand drive units of the X9 were shipped to Thailand, with deliveries set to begin immediately upon arrival.

According to He Xiaopeng, by 2023, XPeng aimed for half of its sales to come from markets outside China. In 2024, 13% of the company's total sales were generated from international markets. XPeng Vice Chairman and President Brian Gu reiterated this during the Consumer Electronics Show (CES) in Las Vegas last month, emphasizing the company’s long-term vision for global expansion.

XPeng Chairman and CEO He Xiaopeng

Beyond increasing its market presence, XPeng is also focusing on enhancing its charging infrastructure. The company has announced plans to establish ultra-fast charging stations in Thailand and Hong Kong within the first half of 2024. This initiative is expected to improve accessibility and convenience for EV users in these regions, aligning with the company's broader strategy to support its expanding fleet outside China.

Additionally, XPeng has confirmed that it will begin testing its autonomous driving system in select international markets this year, with the goal of introducing self-driving vehicles to customers globally by 2026. As part of its "go-global 2.0" strategy, the company is targeting expansion into Europe, Southeast Asia, the Middle East, and Africa.

Thailand has been identified as a key market for XPeng, given the country's increasing focus on electric mobility. The Thai government has set a target for 30% of its total auto production to be zero-emission vehicles by 2030. A government policy also provides incentives of up to 100,000 baht (approximately $2,976) per EV purchase from local manufacturers between 2024 and 2027.

Chinese automakers, including XPeng, are gaining ground in the Thai market, traditionally dominated by Japanese brands. In 2024, the market share of Japanese passenger vehicles in Thailand dropped to 64.8%, down from 67% in the previous year, while Chinese automakers' share increased from 17.1% to 18.8%, according to data released by Toyota Motor's Thai subsidiary.

XPeng G9

Unlike competitors such as BYD and Great Wall Motor, which have already established manufacturing facilities in Thailand, XPeng does not currently have plans for local production. Addressing the issue, He Xiaopeng stated that the company could only "answer the question [about Thai plants] when it grows bigger." He also mentioned that XPeng expects to have production plans in multiple locations worldwide in the future.

XPeng's exports to Thailand currently benefit from zero tariffs under a free trade agreement signed between China and Thailand in 2018. However, the situation is different in other global markets. In 2023, the United States imposed a fourfold increase in tariffs on Chinese EVs, raising the duty to 100%. Similarly, in October 2024, the European Union approved additional tariffs of up to 35% on Chinese EV imports, in addition to the existing 10% tariff.

As XPeng accelerates its global expansion, it faces a competitive landscape and evolving regulatory challenges. While the company continues to grow its international footprint, its strategy for navigating trade policies, expanding production, and strengthening its market position remains a focal point for the industry.