SHANGHAI (Reuters) - Xpeng (NYSE:XPEV) unveiled its extended-range hybrid technology on Wednesday, as the Chinese electric vehicle maker bets on a pivot to such products that are more cost-competitive than pure EVs to boost sales and improve profitability.
Its "Kunpeng Super Electric System" enables a car to drive more than 1,400 kilometres with an internal combustion engine available to charge the batteries once depleted, founder He Xiaopeng said at a livestream event in the southern Chinese city of Guangzhou.
"I have noticed that the infrastructure such as power grid in many countries is actually less developed than that in China. We need new types of power charging solutions catering to different market conditions globally. Therefore, we have come up with the extended range hybrid," He said.
However, the automaker did not say when it would launch new models equipped with this technology.
Following Li Auto (NASDAQ:LI), which has been mainly selling extended-range electric vehicles (EREV), more Chinese automakers are embracing this technology, which uses fewer batteries that account for a significant part of the cost of an EV.
Nio is also planning an EREV for sale only in overseas markets, including the Middle East, North Africa and Europe, Reuters reported earlier this week.
In October, battery giant CATL also launched its first battery product specialised for extended range hybrids as it aims to meet the growing demand from automaker clients and consumers.
EREVs are also subject to the European Commission's additional tariffs against Chinese-made EVs, but they could help automakers lower costs per vehicle to partly counter the impact, said Yale Zhang, managing director at Automotive Foresight.
They can adapt to markets that don't have sufficient infrastructure for mass adoption of EVs, Zhang added. For example, in Europe, 16 EVs need to share one charging pole while the ratio has dropped to 2.5 to 1 in China, according to Zhang.
Xpeng also showcased other new technologies, including its self-developed chip for artificial intelligence, its humanoid robot and a flying car.
It will deliver the latest version of the advanced assisted driving system to its users this month and aims to improve the success rate of changing lanes and parking autonomously, the company said.