Smart EV manufacturer Xpeng increased sales by 199% year-over-year in its most recent quarter, and momentum’s not slowing down.
It just announced that it’s making its way to Europe for mass rollout of the new sedan, with its sight set on the Netherlands, Norway, Sweden, and Denmark.
Europe’s Big Four
Following on from the inaugural debut of Xpeng’s P7, the company announced its latest release, the P5. This vehicle is said to have the longest range of any other Chinese EV at 706km and will be the first car in production fully equipped with lidar sensors, which map objects and environments.
But, on top of the new lineup addition sure to boost sales, why is Xpeng going after Scandinavia and the surrounding markets?
Because these countries are among those with the highest rate of adoption for plug-in electric vehicles in the world. Incentives including cheaper road tax and exemption of toll fees, combined with billions invested in infrastructure have transformed these countries into the leading EV adopters.
These are the current figures for new car sales and charging stations in each region:
- Norway — 84% and 16,000 charging stations
- Sweden — 61% and 11,600 charging stations
- Denmark — 50% and 4,800 charging stations
- Netherlands — 30% and the largest charging points network on the continent at 80,000!
Take the U.S. as a comparative example. It hosts an expansive network of more than 113,000 charging outlets, but the ground covered per mile is vastly different. This has hindered adoption to an extent, hence a much lower rate of adoption at just 4.5% of market share for new registrations.
There’s opportunity all over, but Xpeng’s going after the right audience. Very quickly, it’s made its way up through the ranks, and the company’s full-year results on March 28th will be one to watch.
Financial Writer at MyWallSt
David's favorite stock is Google. He's a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.