Xpeng Motors announced on Monday that it has obtained approval from China’s Ministry of Industry and Information Technology to hold the highest licensed equity of 50% in both Yidian Chuxing and Zhipeng IoV.
Up to the announcement date, Xpeng Motors held 50% equity of Yidian Chuxing and Zhipeng IoV through its wholly-owned subsidiary. The company will continue to incorporate the financial results of Yidian Chuxing and Zhipeng IoV into its consolidated financial statements.
Yidian Chuxing and Zhipeng IoV were established in Guangzhou in 2018, with legal representatives Xia Heng and He Tao, two co-founders of Xpeng Motors. Their business scope includes computer technology development, technical services, car rental, computer technology transfer services, road freight transport agency, logistics agency services, software wholesale, software retail and other areas.
According to some observers, after Xpeng Motors is allowed to hold the highest licensed equity, Yidian Chuxing and Zhipeng IoV will be quickly merged with Xpeng Motors as subsidiaries. This is expected to improve the financial data of Xpeng Motors, and will also promote the development the firm’s new businesses.
According to data released by Xpeng, total deliveries in October of this year reached 10,138 units, up 233% year-on-year. Among them, the Xpeng Motors P7 accounted for 6,044 units, up 187% year-on-year, while G3 series products accounted for 3,657 units. The third production model P5, which went on sale September 15, has been delivered 437 times in October.