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Chinese electric car manufacturer Xpeng is launching a Tesla Model Y competitor in 2023




A new Xpeng P7 car is displayed at Xpeng Motors flagship store in a mall. Xpeng P7 is one of the two popular models of Xpeng motors.

Zhang Peng | LightRocket | Getty Images

Chinese electric car maker Xpeng teased details of two new vehicles it plans to launch next year, with one positioned to be a competitor to Tesla̵[ads1]7;s Model Y.

Currently, the company has four cars for sale – the flagship P7 sedan, a cheaper P5 sedan, the G3 sport utility vehicle and a larger G9 SUV that will start being delivered to customers in October.

Xpeng has been aggressive in its vehicle launches as it looks to tap into China’s fast-growing electric car market and challenge leaders such as Tesla and Warren Buffett-backed BYD.

While the company hasn’t released names or many details about the two new models slated for 2023, Xpeng president Brian Gu did provide some tidbits of information.

One of the vehicles will be a so-called B-class vehicle and the other a C-class vehicle. The classes refer to the size of the vehicle. For context, the company’s P7 sedan is a B-class car while the G9 SUV is a C-class vehicle.

Gu said the B-class vehicle will launch in the first half of next year and “is actually going to target [an] even bigger market segment” than the P7 sedan. He said the car could be considered a “strong competitor” to Tesla’s Model Y mid-size SUV.

The C-Class product will be released in the second half of 2023, Gu added.

“Given the premium and large-format positioning, the number may be limited in terms of contribution,” Gu said of the C-Class model. “But again, it’s still going to be targeting a whole new segment that we didn’t cover before,” he added.

Gu also said the new models will not be sedans. He did not comment on what type of vehicle they would be.

The executive said the B-Class model will be “different” from the upcoming G9 in terms of size and price point.

“So there’s minimal cannibalization from our model positioning and lineup,” Gu said.

Tesla’s Model Y is consistently one of the best-selling electric vehicles in China. But competition in the world’s largest electric car market is increasing with Xpeng and rivals Nio and Li Auto trying to challenge the American giant.

Details of Xpeng’s new cars came after the company reported a bigger-than-expected loss in the second quarter of the year and weak third-quarter delivery guidance that sent shares into a slump.

Gu said that with the launch of the G9 and its new cars next year, the company will enter a “growth cycle.”



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