XPeng, Inc. (NYSE:XPEV), which was among the first Chinese electric vehicle startups to set its sights on Europe, is deepening its expansion in the region.
What Happened: Guangzhou, China-based Xpeng said Thursday it has begun accepting customer reservation for its P5 sedan in four European nations: Denmark, the Netherlands, Norway and Sweden.
The company termed the development as a "major milestone" in its European expansion plans.
Reservations are accepted online and are accessible through the company's official country-specific websites as well as the XPeng mobile app launched earlier this week. Test drives will be available in April 2022.
"The XPENG P5's arrival in four key European markets is a new demonstration of our commitment to Europe," said Leon He, vice president of XPeng.
"The P5 brings a host of differentiated features to a new customer base in Europe, a market where we are building ourselves as a long-term player."
XPeng also said it is opening its first experience store in the Netherlands. The store is located in the Westfield Mall in Leidschendam, located close to Rotterdam and the Hague. The P5 and P7 sedans as well as the prototype of its flying vehicle X2 are on display in the store, the company added.
The company plans to open two additional stores in the Netherlands later this year.
Related Link: XPeng Launches P5 EV Sedan With Advanced Smart Capabilities, Sub-$25,000 Starting Price
Why It's Important: XPeng is coming off a strong 2021, having navigated supply side challenges fairly well, while also unveiling an improved version of its G3 SUV and launching the P5 sedan.
Europe offers a promising opportunity for EV makers given the stricter mandate in place for transitioning to green energy vehicles. XPeng's domestic peers Nio, Inc. (NYSE:NIO) and BYD Company Limited (OTC:BYDDF) have all forayed into Europe. Nio has set up sales, charging and services infrastructure in Norway and is looking to expand into four additional European countries.
XPeng is already selling its G3 SUVs and P7 sedans in Norway. In February, the company said it forged strategic partnerships in the Netherlands and Sweden to set up self-operated retail stores in Europe.
With the more affordable P5 sedan, XPeng can aim to have a broad portfolio of EVs catering to different price segments. During the sedan's launch in mid-September, the company indicated a starting price just under $25,000.
XPEV Price Action: XPeng shares were trading down 10.75% Thursday morning at $25.56 amid weakness in Chinese stocks.
Courtesy photo.
