Chinese electric vehicle (EV) startup Xpeng continues to hold strong amid intensifying price competition in China’s EV market, maintaining steady sales momentum while local and international competitors fight to keep pace.
On Tuesday, Xpeng announced it delivered 34,611 vehicles in June, marking its eighth consecutive month exceeding 30,000 deliveries, News.Az reports, citing CNBC.
The steady performance highlights Xpeng’s ability to sustain demand despite an aggressive price war that has shaken the industry. Following the announcement, Xpeng’s shares rose more than 2% during New York trading.
While the company did not disclose the breakdown of deliveries between its advanced driver-assistance models and the more affordable Mona brand, the overall numbers underline Xpeng’s resilience in a crowded and fiercely competitive market.
The price war, primarily driven by major players like BYD and Tesla alongside numerous local startups, has escalated in recent weeks, prompting concern from Chinese authorities. Government officials have criticized the intense discounting as “involution”, excessive and counterproductive competition that could harm the industry’s sustainable growth.
Chinese President Xi Jinping convened a high-level financial and economic commission meeting on Tuesday, emphasizing the need for greater regulation of “low price, disorderly competition” in the EV sector. The directive signals Beijing’s intent to rein in aggressive pricing tactics to stabilize the market and promote healthy competition.
Despite the challenging environment, Xpeng’s steady sales performance suggests it may be carving out a stable position in China’s dynamic EV landscape as rivals respond to market pressures.
