XPeng Inc. entered into a cooperation agreement with the City of Wuhan to build Smart EV Manufacturing Base to meet demanding the world’s largest electric vehicle.
Chinese EV maker has partnered with the local government to build a manufacturing base with annual capacity of 100,000 units.
XPeng didn’t state the cost of the 733,000 square meter base, which will also feature manufacturing and powertrain plants, as well as and research-and-development facilities.
XPeng currently makes vehicles at facility located in Zhaoqing in Guangdong province. The EV startup announced its second plant in September in Guangzhou, which is likely to commence production by end of 2022. Each of these plants can make 100,000 units annually.
China’s new energy vehicle market continues to gain momentum, underlined by a record-breaking sales volume of over 1.3 million in 2020.
“Smart EVs are booming in popularity in China. We have a long-term strategic roadmap to embrace the sector’s transformation. Expanding our capacity in key hubs like Wuhan plays a critical role,” said Mr. He Xiaopeng, Chairman and CEO of XPeng at the signing ceremony in Wuhan today. “Wuhan’s strategic location as an auto manufacturing and distribution hub will further enhance our supply chain management, sales and distribution network in the future,” Mr. He continued.
“Our technology know-how will help the city enrich and upgrade its Smart EV industrial capability, strengthening its pivotal role as an auto hub for the future,” added Mr. He.
The company delivered record 13,340 units of its current two models in the first quarter, marking an increase of 487 percent over the same period last year as it recovered from the pandemic-induced sales slump.