Chinese language electrical car firm Xpeng instructed CNBC on Friday that its newly launched X9 mannequin could possibly be a “recreation changer” for the business.

Xpeng launched the X9 massive 7-seater EV on Jan. 1, a automobile constructed on its SEPA2.0 structure for the Chinese language market. The X9 collection are priced between 359,800 yuan to 419,800 yuan (about $50,360 to $58,760) with instant deliveries.

“For X9, we really anticipate this to be a recreation changer for the battery electrical automobiles phase for MPVs (multi-purpose automobiles),” Brian Gu, vice chairman and co-president of Xpeng, instructed CNBC’s Emily Tan in an unique interview.

“We imagine this could possibly be the highest vendor in its class … as a result of I feel it has some very revolutionary know-how and design in addition to superior dealing with, business main sensible driving know-how – packed into a really fantastically designed product,” mentioned Gu.

Xpeng’s new launch comes as a number of home EV gamers comparable to Nio, Huawei and Zeekr just lately revealed new electrical automobiles. Even Chinese language shopper electronics firm Xiaomi is launching its first EV to compete available in the market.

Xpeng has laid out formidable plans to roll out driver-assist know-how in China by finish of final 12 months and in Europe by the tip of 2024.

The Chinese language EV maker additionally entered right into a cooperation framework settlement with Guangdong Huitian on Jan. 2 to fabricate, develop and promote flying automobiles, the place Xpeng will present analysis and improvement, know-how consulting providers and gross sales agent providers to Guangdong Huitian.

“We anticipate in 2024, we will likely be rising a lot sooner than the business development which signifies that we are able to broaden our market share,” mentioned Gu, including that the agency will likely be trying to enhance revenue margins with higher scale and higher product combine.

“The X9 will likely be a really excessive margin product for us,” mentioned Gu.

Competitors is intensifying within the Chinese language EV market, with BYD, Li Auto and Geely among the many small variety of gamers which have hit their annual gross sales targets.

Xpeng and Nio had been amongst people who missed their targets.

Xpeng delivered a complete of 141,601 items in 2023, a 17% enhance from a 12 months in the past. This fell in need of the agency’s goal of delivering 200,000 automobiles for the 12 months as reported by native media.

“The main target of traders [for 2024] is whether or not the corporate can keep first rate supply momentum with new launches and enhance profitability in a difficult pricing surroundings, in our view,” mentioned Morningstar analyst Vincent Solar in a Nov. 16 be aware on Xpeng.

Nio delivered 160,038 automobiles in 2023, representing a rise of 30.7% in comparison with a 12 months in the past — however it nonetheless was properly beneath its goal of about 245,000 vehicles primarily based on administration’s goal to “double the amount” of 2022 throughout their fourth quarter earnings name.

Li Auto delivered 376,030 automobiles in 2023 – assembly its annual supply milestone of 300,000 automobiles.

By way of gross sales, BYD met its 3 million goal in 2023 and surpassed Tesla because the world’s top-selling EV model within the fourth quarter, promoting extra battery-powered automobiles than its U.S. rival.

BYD produced 3.05 million automobiles in 2023 whereas Tesla mentioned it made 1.84 million automobiles that very same 12 months.

Gu is optimistic on China’s EV market in 2024 regardless of challenges, saying that “2024 will likely be a really aggressive 12 months” with new mannequin and model launches.

“I feel that the EV sector in China ended on a really excessive be aware within the fourth quarter, in the event you have a look at the penetration charges approaching 40% in the direction of the tip of this 2023, which is the excessive level that we have now seen within the business,” mentioned Gu. “So all that factors to a robust momentum.”

In response to TrendForce, China’s new vitality car penetration charge exceeded 40% for the primary time in November and “optimistic development” is anticipated by 2024.

“I feel we’ll proceed to see a variety of the catalysts that is propelling the expansion of the brand new vitality car market, clearly the know-how, the product launches, in addition to the continued conversion from inside combustion engines to new vitality automobiles,” mentioned Gu.

 The brand new vitality class consists of electrical and plug-in hybrid energy sources.

“However with a view to be aggressive, I feel we nonetheless have to concentrate on differentiating revolutionary know-how in addition to sustaining a really sturdy cost-competent aggressive benefit with scale in addition to technological improvements,” he added.