Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Trending in China: Outrage Ensues as Updated U.S. Student Visa Policies Force International Students into a Dilemma
Tencent’s PUBG Mobile Game Hits $3 Billion Milestone
Luckin Coffee Shareholders Vote to Remove Chairman, Bloomberg Reports
France Won’t Ban But Will Discourage Use of Huawei 5G Equipment, Official Says
Trending in China: ‘Lipstick King’ Li Jiaqi Settles in Shanghai, Prompting a Rethink of ‘Talent’
Tencent Plays in U.S. With California Game Studio Launch
Trending in China: Shenzhen Thinks Only Children Should Get Paid Leave to Look After Their Parents - Cue Heated Debate
German Drugmaker BI Launches Shanghai Center to Harness Chinese Expertise
Chinese Self-Driving Truck Firm Aims to Cover Most of U.S. by 2024
Trending in China: Chinese Netizens Tell Indian Prime Minister Modi To ‘Shut The Door On The Way Out’ As He Quits Weibo
Trending in China: If You Can’t Beat Them, Join Them – Why Tencent is Laughing At Itself
Meituan Eyes Robot-Enabled Deliveries with $14 Million Investment in PuduTech
India Ban Could Hit TikTok’s Parent Company to the Tune of $6 Billion
Sina Weibo to Issue $750 Million in Bonds
Embattled Leshi Forced to Sell Smart TV, Livestreaming Trademarks and Swiss Cleaning Carmaker Launch Driverless Street Sweeper
Trending in China: How an ‘Old Godmother’ Took on China’s Internet Giant and Won
China’s IT Spending Expected to Hit $297 Billion: IDC
TikTok Moves Data Protection of European Users from U.S. to U.K. and Ireland
Trending in China: Dazed and Confused – China’s Elderly in Online Pandemic World
Xpeng Buys Electric Vehicle Firm in Drive to Do Own Manufacturing

By Ding Yi and Zheng Lichun / Mar 23, 2020 05:20 PM / Business & Tech

Photo: VCG

Photo: VCG

Xpeng has acquired a lesser-known electric carmaker through its investment affiliate, a move industry observers say could help it produce its own new energy vehicles independently, as the company seeks to reduce dependence on its manufacturing partner.

The deal, which will see Xpeng-owned Zhaoqing New Energy Investment Co. buy Guangdong Foday Automobile, will help Xpeng improve its supply chain management and enhance its product development and manufacturing capabilities, a Xpeng representative said, without specifying how much money it paid.

A source close to the matter told Caixin that the acquisition will also help Xpeng obtain a license for its own manufacturing facility in Zhaoqing, Guangdong province, to build vehicles independently. The 10 billion yuan ($1.4 billion) Zhaoqing plant, which aims to achieve an annual production capacity of 200,000 units, is already making cars on a trial basis and is scheduled to produce Xpeng’s second model, the P7 electric sports sedan, the source added.

Currently, Xpeng produces its G3 electric compact sport utility vehicles under contract with Haima Auto. However Haima is currently facing possible delisting from the Shenzhen Stock Exchange due to poor financial conditions. Haima produced only 630 Xpeng G3s in January and none in February amid the coronavirus outbreak, according to its filings to the bourse.

The Xpeng representative said that the acquisition of Foday will not affect its partnership with Haima.

Two weeks ago, Xpeng claimed that China’s Ministry of Industry and Information Technology (MIIT) had rated the P7 as being able to drive 706 kilometers on a single charge, longer than any other electric car sold in China. The company also said at the time that it will officially launch the P7 and start deliveries in China in the second quarter of 2020.

Contact reporter Ding Yi (

Related: Xpeng Gets Green Light to Test Autonomous Vehicles in U.S.

Share this article
Open WeChat and scan the QR code