After Tesla, rival Xpeng to cut costs in China with new vehicle manufacturing platform
Chinese electric vehicle maker XPeng (NYSE:XPEV) unveiled Sunday its new platform architecture for making vehicles that will set the foundation for future production models and reduce the cost of development and manufacturing.
The Smart Electric Platform Architecture (SEPA) 2.0 is expected to shorten the R&D cycle for future models by 20%, as well as cut costs on adaptations for advanced driver assistance systems (ADAS) and smart infotainment systems by 70% and 85%, respectively.
The modular, interchangeable vehicle platform will support a range of vehicle types, like XPeng's upcoming G6 coupe SUV, which debuts Tuesday at Auto Shanghai 2023, Brian Gu, Xpeng's president, told reporters Sunday.
The G6 will be the first vehicle built on the SEPA 2.0 platform. 
The smart manufacturing system will be built out by 2025, the company said, adding that all manufacturing facilities will integrate SEPA 2.0 through technology upgrades.
Last week, The Hong Kong Economic Times reported that the two models of Tesla (NASDAQ:TSLA) will experience considerable price cuts in China, with the Model 3 Performance edition having a 14.7% sticker price decrease and the extended range version of the Model 3 seeing an 11% discount. According to the report, Model Y pricing would be reduced by roughly 9%.
Meanwhile, Tesla will not be present at China's largest annual auto show, which will be held next week in Shanghai from April 18 to 27, according to event organisers.
Read more on recent EV delivery data. Chinese automaker Li Auto (LI), Nio (NIO), and XPeng (XPEV) all reported March deliveries rose on a year-over-year comparison.
Shares of XPeng (XPEV) is up 13.7% in Hong Kong on Monday.