Chinese automakers BYD and XPeng are set to make a splash at the prestigious IAA Mobility event in Munich, Germany. Joining them on the grand stage is Tesla, marking its first appearance at the event in a decade.
XPeng: Breaking Ground in Germany
XPeng (ticker: XPEV) will be participating in the event for the first time, following a substantial $700 million investment from Germany's Volkswagen. The Chinese start-up announced its plans to enter the German market in 2024, offering its highly anticipated P7 sports sedan and G9 SUV models. Already established in four other European markets, the expansion into Germany marks a significant milestone for XPeng.
"Today represents an important step on our international expansion journey," stated Brian Gu, vice chairman of XPeng. Recognizing the immense competition in Germany, Gu emphasized the company's commitment to delivering the utmost quality and meeting the high standards of discerning European customers.
Stock Surge for XPeng
Investor enthusiasm was evident as XPeng stock surged by 2.4% in Hong Kong on Monday. The stock rally follows an impressive delivery performance, with the company reporting 13,690 cars delivered in August, compared to 11,008 in July.
Electric Vehicle Showdown at IAA Mobility in Europe
BYD Presents European Debut of Denza Luxury Brand
BYD (1211.HK) is set to showcase six electric vehicles at IAA Mobility, the renowned auto show that commences on Tuesday. Among the highlights is the European introduction of the Denza luxury brand's D9 electric minivan, a remarkable collaboration with Germany's Mercedes-Benz Group (MBG.Germany).
BYD experienced a 3.1% increase in its Hong Kong stock trading on Monday. The company also reported an impressive 88% surge in battery-electric vehicle sales for August compared to the same period last year.
Europe's Electric Vehicle Arena: Chinese Brands vs. Tesla
Europe serves as a critical battleground for Chinese electric vehicle manufacturers, including BYD, as well as Tesla (TSLA). European markets exhibit a greater inclination toward adopting electric vehicles compared to the United States. Moreover, lower regulatory and tariff-based barriers make it favorable for these brands to penetrate the market.
At IAA Mobility, all eyes will also be on Tesla as the American automaker makes a notable return to the auto show, marking its first appearance since 2013. Tesla is anticipated to unveil its revamped Model 3 electric vehicle, recently launched in China, featuring an upgraded interior, extended range per charge, and a slightly higher price point. Notably, this enhanced version of the Model 3 is available in China and Europe but not yet in the United States.
