Xpeng electric cars sign a deal with Chinese banks for a massive expansion of production

Xpeng Incorporated, who are a leading Chinese electric car producer, have announced it has signed a strategic cooperation agreement with leading domestic banks. Under the agreement, Xpeng has secured credit of RMB12.8 billion (£1.5 billion/$2 billion/€1.6 billion) from five domestic commercial banks including the Agricultural Bank of China, the Bank of China, China Construction Bank, China CITIC Bank and Guangzhou Rural Commercial Bank.

The credit will be used to support Xpeng’s business operations and expansion of its manufacturing, sales and service capabilities. These facilities will help the company optimise the efficiency of its cash management, cost control and other corporate functions. Xpeng are developing rapidly following a successful £665 million ($900 million/€746 million) pre-initial public offering (IPO) fundraising and £1.26 billion ($1.7 billion/€1.41 billion) IPO in August 2020.

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Xpeng’s physical sales and service network have expanded rapidly into 58 cities with 116 retail sales stores and 50 service centres. The company delivered a total of 27,041 vehicles in 2020 with a fast-growing customer base that has reached over 40,000.

To support this growth of electric car sales there are now 135 Xpeng supercharging stations in 50 cities. In November 2020, when the company’s second manufacturing factory in Guangzhou opened it became the first Chinese start-up electric car producer with two self-owned factories. Xpeng customers are offered free supercharging services at 670 supercharging stations across 100 Chinese cities, since the free-to-use supercharging program was launched in September 2020.

Xpeng will launch its third production model, a new smart electric saloon, in 2021. It will be equipped with lidar technology that represents a breakthrough in the mass deployment of the cutting-edge autonomous driving technology.

In December 2020 Xpeng delivered the first batch of 100 of it G3 smart electric sports utility vehicles to customers in Norway. This represented a big milestone for the start of the company’s international business.

He Xiaopeng, Chairman and CEO Xpeng, said: “Looking ahead, 2021 presents us with exciting opportunities. We believe the strategic collaboration with these leading financial institutions will enable us to further accelerate growth by building upon our core strengths. With our unwavering commitment to technology innovation and customer services, we look forward to bringing compelling EV experience tailored to our consumers.”

Ian Osborne
Ian Osborne
Editor-in-Chief at ElectricDrives

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