XPeng Motors Starts Construction on Auto Parts Industrial Park
The XPeng Smart Auto Parts Industrial Park officially started construction on Monday in the Chinese city of Zhaoqing, Guangdong Province.
The administrative committee of the High Technology Industry Development Zone of Zhaoqing and XPeng Motors signed a cooperation framework agreement that the first phase of the XPeng Smart Auto Parts Industrial Park would cover an area of 1048 mu (173 acres), and both parties jointly promoted the upstream and downstream projects of XPeng‘s industry chain to settle there.
On Monday,, six XPeng auto parts manufacturers, including Dongguan Hongri, Taicang Yicheng, Guangzhou Ainuoli and Tenglong Auto Parts, signed a contract to settle in the Zhaoqing High Technology Industry Development Zone, with a planned total investment of 1.32 billion yuan ($197.1 million).
XPeng’s Zhaoqing Plant was announced in 2017, which is the company’s first vehicle production with an annual production capacity of 100,000 vehicles. In August 2021, the second phase of the Zhaoqing Plant was signed and started construction. Upon completion, the annual production capacity will increase from 100,000 vehicles to 200,000 vehicles. According to data released by XPeng Motors, a total of 34,561 vehicles were delivered in Q1 this year, up 159% year-on-year.
The firm’s chairman He Xiaopeng said in a video that he expects to attract 80 to 100 projects from XPeng‘s upstream and downstream supply chain in the next two to three years. He also promoted the development of new energy smart cars together with the High-Tech Zone.
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It is worth noting that on May 30, Ruiqing Times Power Battery Factory, which has received investment from battery giant CATL, also held a commissioning ceremony in Zhaoqing. The first phase of the project featured investment of 12 billion yuan, and the firm planned to build a 25GWh power and energy storage battery production line. After signing a contract to settle in Zhaoqing in February 2021, the factory was put into production in only 14 months.