When it comes to buying an electric scooter, you have to choose between speed and range; some scooters can only go 30 miles before needing a recharge, while others can go up to 60 miles before needing the plugin. But the Xpeng scooter gives you both; its powerful battery can last up to 100 miles before needing to be recharged. Let’s have a look at ‘Xpeng competitive advantages’.
Top 5 Competitive Advantages of Xpeng
Xpeng is a new electric car company that was just founded in China by Geely, Anhui Jianghuai Automobile. As a newcomer to an already established industry, Let’s look at their top 5 competitive advantages:
1. Strong Brand Name
Chinese car companies are considered some of the best in Asia right now. When you think of Hyundai or Kia, what do you think of? Solid reliability, long-lasting models and strong designs; are things people want when it comes to buying a vehicle! It’s not enough for consumers to see potential in your brand – they have to believe you can deliver results. That’s something Xpeng already has going for them.
2. Attractive Pricing Model
A lot of customers won’t pay a premium price tag just because they like Tesla’s style (which is still expensive, btw). Instead, buyers will first look at their most basic need: how much is my monthly payment going to be? For example, one member on Reddit said he went through hundreds of Tesla vs Nissan comparisons before making his final decision. Xpeng has already begun low-key advertising that theirs will be significantly cheaper than Tesla – and even have hinted that it could come in below $25k! This might not hold for their highest-end models – but it’s a start.
3. Serious Funding
Xpeng isn’t here to mess around; they plan on dominating electric cars in China and are willing to spend billions of dollars to do so. Rumour has it that they have already reserved a manufacturing plant capable of producing 1 million units per year! If all goes according to plan, their facility could rival Tesla’s Gigafactory.
4. Strong Partnerships
Partnering with some of China’s best suppliers could give Xpeng an advantage over competitors when it comes to quality. Their partnerships may be one of their biggest weaknesses – but if successful, it could be one of their biggest strengths as well.
5. Fresh Innovation
Xpeng is making sure they won’t be passed up by future competitors: they are hard at work developing new features in electric cars (like what we listed here). They want to push their brand into becoming a household name and are willing to do whatever it takes!
Time will tell how long these competitive advantages hold up. But for now, we can see that Xpeng has some pretty solid advantages going for them. With such stiff competition out there, they need all of them if they hope to dominate their industry.
Xpeng Business Model
Xpeng cars are full of computerized parts and don’t need to be serviced as often as other vehicles. In addition, they don’t have human drivers, who may cause accidents or make poor decisions when they are tired. Xpeng vehicles can also be recharged in minutes rather than hours or days—making it easy for them to stay on top of demand. Over time, their durability will add even more cost savings. And because customers rent their vehicles rather than purchase them outright, they get to take advantage of all these benefits while paying only a fraction of what they would have if they bought an electric car now. With so many benefits available right out of the gate, it’s no wonder investors have been eager to fund XPENG Motors – no doubt hoping that Xpeng is just as successful at disrupting its industry as Uber has been with its ride-sharing business model.
Future Success of Xpeng
Xpeng has already won several awards, ranging from the CES 2018 Best Autonomous Vehicle Design and Innovation Award to the Popular Science Best of What’s New 2018 Breakthrough Award. But what makes Xpeng one of China’s most beloved electric vehicles is its beautiful design, performance, and intelligent connectivity—the company calls it SkywebOS.
Xpeng was founded by three ex-Baidu software engineers: Jing Wang, Haoyang Liu, and Ming Qi. All three had previously worked on autonomous driving technologies while at Baidu (NASDAQ: BIDU). Thanks to their previous experience with autonomous technologies, Xpeng will be able to hit the U.S. market running, unlike other Chinese electric car companies which first have to build a reputation in Europe or Asia before they can make moves in America. Like all new Chinese electric car companies, Xpeng hopes to draw attention away from established brands like Tesla.
Conclusion
Competitive advantages should be something that is under your control and over which you have full control. It is a set of assets, resources or abilities that make it possible for your business to profitably offer products and services that can be considered superior to others regarding price, quality or reputation. Your competitive advantage has a significant impact on how you develop your marketing strategy; without one, your organization will eventually fail as competitors take away market share.
FAQs
- What makes Xpeng different?
Comparing Xpeng to other Chinese EV makers is a bit like comparing apples and oranges because they are targeting completely different markets. Whereas Faraday Future, Byton, and others are targeting high-end consumers that want luxury EVs with advanced tech features, Xpeng aims to provide highly affordable EVs for lower-income families. Being based in China also makes a big difference as every country has their unique design preferences.
- Is Xpeng a good company?
It’s too early to say if Xpeng will be successful, but so far they have been on track. They raised more than $230 million in Series A and B funding before launching their first production car. The company also partnered with Foxconn, a Taiwanese manufacturing giant that helped Apple create its iconic iPhones and MacBooks.
- Is Xpeng overvalued?
As of today, there is no way to tell if Xpeng is over or undervalued. However, it’s worth noting that investors place a premium on companies like Tesla and NIO because of their strong brand names and promise of premium features for high-end consumers.
