Tesla Rival From China Teams Up With UAE Auto Dealer To Boost EV Game In Middle East

To expand its international footprint, Tesla’s Chinese rival XPeng Inc. XPEV has established a long-term strategic partnership with Ali & Sons, a prominent automotive dealership group in the United Arab Emirates (UAE).

What Happened: The partnership will see XPeng, a leading Chinese Smart Electric Vehicle (EV) company, alongside its new partners from strategic markets, introducing its latest Smart EV models to local consumers, XPeng announced on Thursday. The strategic markets include Egypt, Azerbaijan, Jordan, and Lebanon.

XPeng’s global market dealer strategy revolves around forming alliances with local dealers to establish a top-tier distribution, sales, and service network in various regions. These partnerships will enable Xpeng to offer its latest Smart EVs to local consumers through branded showrooms, after-sales support, and comprehensive guidance throughout the purchasing process.

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The G6 SUV and G9 SUV models will be available in the UAE starting Q3 2024. These models are built for global markets and are based on XPeng’s Smart Electric Platform Architecture (SEPA) 2.0, which lays the groundwork for future production models while reducing development and manufacturing costs.

XPeng has already commenced deliveries of the P7 sedan and G9 SUV in Israel and Azerbaijan in late 2023. This year, the company will begin delivering these vehicles in Jordan and Lebanon in Q2 and in Egypt in Q3.

Why It Matters: The partnership represents a significant milestone in XPeng’s global expansion. The company has been making strategic moves to solidify its position in the global EV market. XPeng’s Vice Chairman and Co-president, Brian Gu, touted the X9 model as a potential “game-changer” for the industry. This new partnership aligns with XPeng’s ambitious plans to expand into the EMEA market, as stated by Alex Tang, the GM of International Markets at XPeng.

XPeng’s expansion efforts are in line with the company’s broader strategy to invest heavily in innovation and AI to bolster its position in the highly competitive Chinese EV market. The company has also announced plans to hire 4,000 employees in 2024, representing a 25% increase in its workforce.

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Image via Xpeng