Beijing (PingWest)—XPeng announced on Thursday that it entered into a cooperation agreement with Wuhan to build a new XPeng Motors Wuhan Smart EV Manufacturing Base.
Supported by the Wuhan government, XPeng will commence the construction of the new manufacturing base with an annual capacity by 100,000 units,, covering a planned area of over 733,000 square meters, and featuring manufacturing and powertrain plants, as well as R&D facilities.
Known as one of China’s major automobile hubs, Wuhan is one of the country’s six key passenger vehicle manufacturing centers, with a well-developed auto supply chain and ancillary facilities, benefiting from its superior geographic location as China’s high-speed rail, expressway and water transportation hub. As the capital of Hubei Province, Wuhan has a population of more than 11 million - the most populous city in Central China - and its GDP exceeded 1,561 billion yuan ($238.28 billion) in 2020.
“Smart EVs are booming in popularity in China. We have a long-term strategic roadmap to embrace the sector’s transformation. Expanding our capacity in key hubs like Wuhan plays a critical role,” said He Xiaopeng, Chairman and CEO of XPeng at the signing ceremony in Wuhan today. “Wuhan’s strategic location as an auto manufacturing and distribution hub will further enhance our supply chain management, sales and distribution network in the future,” He added.
China's new energy vehicle market continues to gain momentum, underlined by a record-breaking sales volume of over 1.3 million in 2020.
XPeng’s new Smart EV manufacturing base will also support Wuhan’s strategic priorities of transforming and modernizing the city’s industrial facilities, and auto manufacturing value chain, creating major innovation clusters and employment opportunities to power the auto industry of the future.
Headquartered in Guangdong province, XPeng currently operates two factories in the region, one is in Guangzhou, and the other is located in Zhaoqing.
In March, the Nasdaq-listed EV maker has reached a strategic cooperation agreement with Guangdong Yuecai Investment Holdings Co., Ltd., the Guangdong provincial government's investment arm. Under the agreement, Yuecai will invest a total of 500 million yuan ($76 million) in XPeng to further accelerate the company's business expansion.