At the G6 launch event, XPENG-W Chairman He XPENG-W wore a rare smile on his face and a glimmer of hope in his eyes. After a year of struggle, XPENG-W finally sees a ray of light.
On June 29th, XPENG-W officially launched the long-awaited SUV G6, with pre-orders already reaching 35,000 units. The capital market reacted swiftly, and on June 30th, XPENG-W's stock price surged by 10.38% to HK$50. As of the close on July 4th, XPENG-W's market value reached HK$94.3 billion, reaching a new high for this year.
The biggest selling point of the G6 is its direct competition with Tesla Model Y. With a starting price of 209,900 yuan, it is nearly 60,000 yuan cheaper than the Model Y. Furthermore, it is equipped with high-voltage fast charging, integrated die-casting, and the XNGP full-scenario intelligent driving system.
It can be said that with the support of the Fuyao architecture, XPENG-W has played all its trump cards.
He XPENG-W firmly believes that the G6 has twice the potential of the P7, and achieving monthly sales of over 10,000 units is the passing line.
However, he does not believe that the G6 is the &#34;hope of the whole village&#34; and that all the chips should be placed on it. &#34;It is a mistake for a company to rely solely on one model or even one small milestone. We have many new models and facelifts planned for next year and the year after. The automotive industry is a long-term game, and only those who laugh last will laugh best.&#34;
Will the G6 become a sales leader for the XPENG-W brand, like the Tesla Model Y and the Ideal L7? The market and investors are eagerly awaiting.
Below is a transcript of the conversation with He XPENG-W:
Q: What sales volume of the G6 would you consider it a successful product?
He XPENG-W: Definitely over 10,000 units (monthly sales), that's the minimum.
Q: What was the thinking behind the pricing of the G6? What are your expectations for the future?
He XPENG-W: The current price is very good. The Fuyao architecture incorporates a lot of capabilities, which is the first point.
Secondly, I am very confident that the main sales of the G6 will come from the three models in the mid-price range (580Max, 755Max, 755Pro), and the average price will be close to 250,000 yuan. So, in the pure electric SUV market starting from 250,000 yuan, I am confident that we can be the number one, and we will continue to strive for the number one position in hybrid and gasoline vehicles.
In the future, I hope that XPENG-W's cars will have a well-defined positioning, enhanced features, and improved software capabilities. We also want to control the price range within our expectations.
After Wang Fengying joined us, she emphasized this point, which is a great complement to XPENG-W. We must have a long-term plan for pricing, competition, and product lineup. Previously, we did not consider the big picture, but now we are considering the overall combination of configuration and pricing very well.
Q: Will the pricing of XPENG-W G6 affect profits and cash flow?
He XPENG-W: Pricing will not affect cash flow. The better the sales volume, the more positive the impact on cash flow. This is nothing to worry about. The pricing this time is closely related to recent organizational changes.
Q: Many people now think that XPENG-W's ability to turn the tide depends on G6. How do you view this?
He XPENG-W: I never see it that way. It is a mistake for a company to rely solely on one car or even a small milestone. The automotive industry is a long-term endeavor. We have a lot of new models and facelifted models coming next year and the year after. I look at the capabilities of a system. The one who laughs last laughs best. When we were in the most difficult time last year, internal colleagues said we should focus on marketing. I said no, we should focus on organizational work and lay a solid foundation.
Q: What is the delivery schedule for XPENG-W G6? How long will it take for production capacity to ramp up? Can the supply chain and production capacity meet the demand of orders?
He XPENG-W: We will ramp up production very quickly in July, August, and September. With the current order volume, we will strive to accelerate further. This time, we have made much more preparations than before.
Q: How can we increase the sales of G9 and P7i in the next six months or one year? Will XPENG-W focus on the market above 200,000 yuan or have a new layout?
He XPENG-W: We have plans and schedules, but I can't tell you. Both in terms of planning and profitability, we have great confidence in next year and the year after.
Q: What is the position of autonomous driving in the future competitive landscape?
He XPENG-W: The most important thing for autonomous driving is product capability. In a few years, when autonomous driving and intelligent cockpit capabilities become stronger, new capabilities will definitely be formed. At that time, it will be about sales capability and commercial realization capability. All these foundations require a larger organizational capability. Many automakers now mainly focus on marketing and sales, but I think they are far from ready for the fierce battle after &#34;32 into 8&#34; and &#34;8 into 4&#34;. The war has just begun.
Q: How do you view the competition between plug-in hybrids and pure electric vehicles? How do you view the long-term approach of pure electric vehicles?
He XPENG-W: Pure electric vehicles will clearly surpass hybrids in the next 1-2 years, at most 2 years. It mainly depends on which categories and positions they are in.
From the overall trend, pure electric vehicles will enter a faster development phase after 2025. The current challenges for pure electric vehicles are longer range, more convenient charging, and lower prices. In addition, achieving globalization is very important for pure electric vehicles.
Q: How do you view the current development of the industry? What changes are there in XPENG-W?
He XPENG-W: I believe the next five years will be the five years of intelligence. Recently, an important realization is that innovation should not only make capabilities stronger but also make costs lower because innovation has multiple dimensions. Why is XPENG-W particularly confident recently?
We can do well in both capability and quality, while also controlling costs. The XPENG-W gene is technological innovation, and technological innovation can bring about many variables.
Q: Three years ago, XPENG-W shared a photo on Weibo with Li Bin and Li Xiang, saying &#34;Remembering the past hardships and seeking change.&#34; Today, three years later, there are differences in sales performance for the XPENG-W. Do the three of you still seek change together? What are your thoughts on the current state and pattern of the sales gap among the three?
He XPENG-W: Actually, there was a significant gap three years ago as well, so I think that being good this year doesn't mean being good next year, and being poor this year doesn't mean being poor next year, so I think it's okay. The three of us are still the same, in the same group, and maybe I chat more with Li Bin.

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