Chinese EV maker Xpeng eyes global market after $1.8 billion HK listing

By Yilei Sun and Tony Munroe

BEIJING (Reuters) - Chinese electric vehicle maker Xpeng Inc, which on Wednesday raised $1.8 billion from a Hong Kong listing, will develop future models based on product platforms designed for international markets, its chief executive said.

The shares opened in Hong Kong Wednesday at HK$168 each, up 1.8% from the stock's issue price of HK$165.

Led by former Alibaba executive He Xiaopeng, the seven-year-old automaker is developing smart-car technologies including a smart cabin and autonomous driving. It is selling P7 and P5 sedans and G3 sport-utility vehicles.

Xpeng will roll out a new product platform with which it can develop several models of different segmentations and sizes, in two years, He told Reuters in an interview.

"The platform will be targeting the global market, meaning we will consider global auto regulations when we develop it," He said. Like rivals Nio Inc and BYD, Xpeng is expanding global sales by shipping cars to Norway, where policies are supportive of EVs.

Xpeng is making its cars in two Chinese factories and is building two new plants. It is adding production hours at Zhaoqing, He said. Its prospectus shows Xpeng is planning an SUV model next year.

"Between 2025 and 2030, China's auto industry might look like the current smartphone industry, which a few players dominate," He, who previously founded a smartphone software company, said.

Xpeng will continue developing smart-car technologies, as well as a flying car that would also be able to drive on roads, He said, without giving a timeframe. The company already has a vertical take-off and landing (VTOL) prototype that is undergoing testing.

Xpeng chose a dual primary listing rather than a secondary listing as it has been listed in New York for less than two years. The dual primary listing allows qualified Chinese investors to take part through the Stock Connect regime linking the mainland Chinese and Hong Kong markets, according to the exchange's rules.

 

(Reporting by Yilei Sun and Tony Munroe; editing by John Stonestreet and Stephen Coates)