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China's Xpeng bets on extended-range hybrid tech to boost sales
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China's Xpeng bets on extended-range hybrid tech to boost sales
Nov 9, 2024 11:09 AM

SHANGHAI, Nov 6 (Reuters) - Xpeng ( XPEV ) unveiled its

extended-range hybrid technology on Wednesday, as the Chinese

electric vehicle maker bets on a pivot to such products that are

more cost-competitive than pure EVs to boost sales and improve

profitability.

Its "Kunpeng Super Electric System" enables a car to drive

more than 1,400 kilometres with an internal combustion engine

available to charge the batteries once depleted, founder He

Xiaopeng said at a livestream event in the southern Chinese city

of Guangzhou.

"I have noticed that the infrastructure such as power grid

in many countries is actually less developed than that in China.

We need new types of power charging solutions catering to

different market conditions globally. Therefore, we have come up

with the extended range hybrid," He said.

However, the automaker did not say when it would launch new

models equipped with this technology.

Following Li Auto ( LI ), which has been mainly selling

extended-range electric vehicles (EREV), more Chinese automakers

are embracing this technology, which uses fewer batteries that

account for a significant part of the cost of an EV.

Nio is also planning an EREV for sale only in

overseas markets, including the Middle East, North Africa and

Europe, Reuters reported earlier this week.

In October, battery giant CATL also launched its first

battery product specialised for extended range hybrids as it

aims to meet the growing demand from automaker clients and

consumers.

EREVs are also subject to the European Commission's

additional tariffs against Chinese-made EVs, but they could help

automakers lower costs per vehicle to partly counter the impact,

said Yale Zhang, managing director at Automotive Foresight.

They can adapt to markets that don't have sufficient

infrastructure for mass adoption of EVs, Zhang added. For

example, in Europe, 16 EVs need to share one charging pole while

the ratio has dropped to 2.5 to 1 in China, according to Zhang.

Xpeng ( XPEV ) also showcased other new technologies, including its

self-developed chip for artificial intelligence, its humanoid

robot and a flying car.

It will deliver the latest version of the advanced assisted

driving system to its users this month and aims to improve the

success rate of changing lanes and parking autonomously, the

company said.

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