{"id":17243,"date":"2022-06-30T15:49:00","date_gmt":"2022-06-30T15:49:00","guid":{"rendered":"https:\/\/daoinsights.com\/?p=17243"},"modified":"2022-10-27T22:32:34","modified_gmt":"2022-10-27T22:32:34","slug":"chinas-evs-at-full-throttle-an-interview-with-edison-xiong-at-xpeng","status":"publish","type":"post","link":"https:\/\/daoinsights.com\/exclusives\/chinas-evs-at-full-throttle-an-interview-with-edison-xiong-at-xpeng\/","title":{"rendered":"China\u2019s EVs at full throttle \u2013 an interview with Edison Xiong at Xpeng"},"content":{"rendered":"\n

Automotive manufacturers in China are facing an electric shock as a result of the mounting appetite for electric vehicles (EVs), which saw the country record its strongest EV market growth in 2021 with over 3.2 million fleets sold<\/a><\/strong>. With the nation racing to reach carbon neutrality by 2060<\/a>, government policies have so far been the major contributing factor to the market momentum<\/a>, however, a transformation has come to the industry in recent years which is being driven by evolving consumer demands.<\/p>\n\n\n\n

Qing Na spoke to Edison Xiong from Xpeng, one of China\u2019s leading EV builders and deep dives into China\u2019s EV space, unveiling opportunities and challenges for market players amid the changeover in the thriving market.<\/p>\n\n\n

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Edison Xiong is currently the product lead at Xpeng Motors. His product portfolio works to solve customer problems but prioritises initiatives that drive the most significant business outcomes. He joined Xpeng after receiving a Bachelor\u2019s and Master\u2019s degree in management science from the School of Management at UCL. Prior to Xpeng, Xiong also had work experience with NIO, another emerging Chinese EV maker, responsible for analysing overseas consumer preferences. <\/p>\n\n\n\n

Could you please provide an overview of the EV industry in China at the moment?<\/em><\/strong><\/h5>\n\n\n\n

I think right now the Chinese EV industry has a really positive image if you compare the Chinese market with others. You can see monthly sales volumes are always reaching new highs and have been surpassing total revenues year on year between the period of 2017 and 2021.<\/p>\n\n\n\n

If we compare the monthly sales revenue, we have seen doubled growth over the past few years. For example, if we look at sales for March 2021 [figure 1], there is a 261% year-on-year increase compared to 2020. What\u2019s also really important about last year was that at the end of 2021, in particular, November and December, we actually saw for the first time, China achieving a monthly penetration rate of 20% for EVs<\/a>, a breakthrough in the EV industry<\/strong>.<\/p>\n\n\n\n

At the end of 2021, in particular, November and December, we saw for the first time, China achieving a monthly penetration rate of 20% for EVs, a breakthrough in the EV industry.<\/p><\/blockquote><\/figure>\n\n\n\n

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Figure 1 \u2013 Wholesale volume of new energy vehicles in China between 2017 and Nov 2021<\/figcaption><\/figure>\n\n\n\n

This is because the EV market has progressed from the stage when a couple of years ago, most Chinese consumers still believed that combustion engine cars were much better than EVs. With the industry in its infancy, only people who were willing to take risks would try EVs and it wasn\u2019t until about 5 years ago that native carmakers started selling them. <\/p>\n\n\n\n

This was much later down the line compared with foreign player Tesla who actually helped with the introduction of EVs in China and drew in some early adopters who were willing to choose the new option thanks to the brand\u2019s existing audience base. From that point onwards, the country has seen a wider adoption of EVs by the public and even a growing appetite for these products in recent years.<\/p>\n\n\n\n

The Chinese government\u2019s push to honour its climate pledge has somehow contributed to the EV market growth, could you bring into context one or two of the government\u2019s policies and explain how they would benefit EV makers and their influence on consumer decisions?<\/em><\/h5>\n\n\n\n

When talking about policy incentives, we can break it down into four major parts. There are monetary rewards, tax exemptions, license privileges, and carbon credits<\/strong>. The money policies are straightforward as the government will reward consumers with a one-off payment when they buy an EV. In fact, the financial incentives have been around since 2010<\/a>. But right now, with the electric vehicle penetration rate rising, the government is actually spending more and more money on the implementation of its policies, as a result of more consumers opting for EVs.<\/p>\n\n\n\n

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Chinese EV carmaker decodes Douyin episode marketing with viral virtual beauty idol<\/a><\/blockquote>