18-3-2024 (SINGAPORE) Xpeng, the Chinese electric vehicle (EV) brand backed by German automotive giant Volkswagen, is gearing up for its highly anticipated launch in Singapore by the second half of 2024.
According to sources privy to the negotiations, the EV maker has recently appointed Premium Automobiles as its official distributor, marking a significant milestone in its foray into the Singaporean market.
For Premium Automobiles, this appointment solidifies its position as a formidable force in the burgeoning EV sector, as Xpeng becomes the second Chinese EV brand in its portfolio, joining the ranks of Zeekr from Geely.
The first Xpeng model set to grace the showrooms of Singapore is expected to be the G6, a sport utility vehicle (SUV) that bears a striking resemblance in size to the iconic Tesla Model Y. Among the anticipated variants is a single-motor version boasting an impressive range of 580 kilometers on a single charge, a testament to Xpeng’s commitment to innovation and sustainability.
While Premium Automobiles remained tight-lipped on the matter, declining to comment on the Xpeng negotiations, the dealership, which also serves as the retail partner for the renowned German car brand Audi, affirmed that the launch of Zeekr in Singapore remains on track for the third quarter of 2024.
Xpeng’s imminent entry into the Singaporean market coincides with a surge in EV adoption rates within the city-state. In 2023, EVs accounted for an impressive 18.1 percent of total car registrations, marking a significant leap from 11.7 percent in 2022 and a mere 3.8 percent in 2021.
Regarded by industry experts as one of the strongest contenders against the EV juggernaut Tesla, Xpeng delivered 141,600 units in 2023 – a figure that, while impressive, pales in comparison to the staggering 1.08 million units achieved by its American counterpart.
Currently, Xpeng’s left-hand drive models grace the roads of China, Denmark, the Netherlands, Norway, and Sweden. However, on March 11, the South China Morning Post reported that the company plans to unveil right-hand drive models in the second half of 2024 as part of its global expansion strategy.
Volkswagen, the German automotive titan, holds a 5 percent stake in the Guangzhou-based company, and the two firms are collaborating to develop two VW-branded models tailored specifically for the Chinese market.
Automotive consultant Say Kwee Neng acknowledges Xpeng as one of three Chinese EV brands – alongside Nio and Li Auto – that have garnered significant acclaim for their cutting-edge technology, sleek design, and sophisticated offerings.
“There is a lot of hype behind these three brands, but ultimately, it will be down to the representative in Singapore to bring in the right model mix and be relevant. We have already seen how BYD has broken down walls to make Chinese EVs desirable to consumers here,” Mr. Say added.
Indeed, the Chinese EV brand BYD has already made significant strides in the Singaporean market, emerging as the fourth-biggest selling brand in 2023, outperforming automotive giants such as Nissan, Hyundai, and even Tesla.
Xpeng’s impending arrival in Singapore adds to the growing list of Chinese brands slated to enter the Lion City’s market, which includes GAC Aion, scheduled for launch in April by Vincar.
This influx of Chinese brands will more than double the number of Chinese car brands present in Singapore from the four that graced the market in 2023 – BYD, MG, Maxus, and Ora.
Mr. Say believes that Chinese EV brands are hastening their move into Singapore to build global credibility as they set their sights on the European markets, a strategic move that could prove pivotal in their quest for international recognition and success.
Automotive analysts anticipate a slower growth pace for EV sales in China in 2024, even as domestic EV brands and Tesla have resorted to price cuts to bolster demand. This slowdown in demand is speculated to be a driving force behind Chinese EV brands’ pursuit of foreign markets, as they seek to diversify their sales channels and tap into new consumer bases.
Beyond Xpeng, the roster of Chinese EV brands poised to make their mark in Singapore includes Smart, which Cycle & Carriage will roll out in the first half of 2024, Chery, represented by Vertex Automobile, Seres, imported by Hong Seh, and Neta, for which Vincar holds the distribution rights.
