From its Guangzhou origins to a bold UK launch, XPeng has global ambitions to steer the future of smart mobility
In Guangzhou in 2014, a company emerged with a vision to redefine the driving experience. XPeng Motors, or Xiaopeng to its Chinese audience, set out not just to craft electric vehicles, but to embed artificial intelligence at their core, creating cars that anticipate and adapt to their drivers. Founded by He Xiaopeng, a former Alibaba executive with a passion for digital innovation, XPeng has grown from a determined startup into a global force, challenging industry titans and capturing imaginations – including, now, in the United Kingdom.
The story begins with He Xiaopeng, a tech trailblazer who saw cars as the next frontier for software. Having built UCWeb, a mobile browser acquired by Alibaba in 2014, he pivoted to automotive, inspired by the global surge in sustainable transport. He was joined by Henry Xia and He Tao, both veterans of China’s car industry. Xia brought years of expertise from Guangzhou Automobile Group, a cornerstone of Chinese manufacturing, while Tao’s research and development skills ensured XPeng’s vehicles could meet exacting standards. They rooted their headquarters in Guangzhou, a hub of industry, and established a second base in Mountain View, California, strategically nestled in Silicon Valley, near the likes of Tesla.
Those early days were fraught with challenges. China’s electric vehicle market was already fiercely competitive, with domestic giants including BYD, a Shenzhen-based leader in affordable EVs and battery technology, and NIO, a Shanghai-headquartered maker of premium electric cars known for its luxurious designs and innovative services, dominating headlines. Globally, Tesla’s sleek models set a high bar. XPeng grappled with supply chain constraints and the need to build a reputation from scratch. Yet its founders focused relentlessly on research, particularly in autonomous driving and AI, believing that intelligence would distinguish them. By 2018, they unveiled the G3, a compact electric SUV blending affordability with smart features, announcing XPeng’s arrival with confidence.
He Xiaopeng remains the heartbeat of XPeng’s mission. His tech roots shape the company’s emphasis on user-focused innovation, from seamless voice controls to intuitive interfaces. “We’re building intelligent mobility for all,” he told Reuters in 2024, his conviction clear. His leadership is bolstered by a formidable team. Henry Xia’s manufacturing know-how ensures reliability, while He Tao drives technical breakthroughs. Brian Gu, vice chairman and president, brings financial sharpness from his J.P. Morgan days, guiding XPeng’s global strategy. The team includes former executives from Ford, BMW and Tesla, lending a worldly perspective vital for markets like the UK.
Funding has powered XPeng’s ascent, blending Chinese and international capital. In 2018, Alibaba and Foxconn, the Taiwanese electronics manufacturing giant, led a £260 million round, captivated by XPeng’s tech-forward vision. Alibaba’s support extended beyond cash, integrating XPeng into its digital ecosystem for sharper software. By 2020, global investors such as Qatar’s sovereign wealth fund and US and Asian funds added £230 million, followed by £380 million more. XPeng’s 2020 New York Stock Exchange listing raised £1.1 billion, affirming its global appeal. About 60% of its funds come from Chinese investors, including IDG Capital and Xiaomi, with 40% from international sources, enabling XPeng to navigate both Eastern and Western markets adeptly.
XPeng’s defining trait is its pursuit of intelligence. Unlike BYD, which excels in volume and battery prowess, or NIO, with its focus on luxury and customer-centric services such as battery-swapping, XPeng crafts vehicles that feel alive with technology. Its cars boast advanced driver-assistance systems (ADAS), voice-activated controls and software updates that evolve over time. “No Chinese carmaker matches our AI scale,” He Xiaopeng proclaimed in a 2024 social media post, spotlighting his company’s in-house work on autonomous driving, leveraging techniques like reinforcement learning.
The current lineup showcases this approach. The P7+ sedan, priced from £27,000 to £35,000, delivers a 400-mile range and ADAS that competes with pricier rivals, appealing to professionals seeking sophistication. The G6 SUV, going for £23,000 to £31,000, draws younger drivers with its sleek design and smart cockpit, featuring real-time navigation and voice interaction. Launched in 2024, the MONA M03, a £15,000 compact EV, targets urban commuters, its affordability and tech driving thousands of monthly sales in China. The X9, a £38,000 MPV, caters to families with luxury and space, recently exported to markets including Thailand. XPeng is also pushing boundaries with its AeroHT division, developing eVTOL (electric vertical take-off and landing) flying cars. While still in prototype – showcased at events like the 2024 Beijing Auto Show – these hint at a future where XPeng’s ambitions soar beyond roads. By late 2025, XPeng aims to roll out Level 3 autonomous driving across its range, a step toward hands-free travel.
XPeng’s pricing is strategic, undercutting Tesla’s Model 3 (£27,000-plus) and BYD’s Han EV (£23,000-plus). Its premium models rival NIO’s ES6 (£35,000) and Li Auto’s L9 (£38,000), a Chinese brand known for hybrid SUVs. In China, XPeng faces intense rivalry – BYD’s scale and battery expertise dominate the mass market, while NIO’s high-end focus and lifestyle offerings like battery-swapping stations carve a unique space. XPeng’s AI emphasis, however, resonates with tech-hungry buyers, giving it an edge both at home and abroad.
Globally, XPeng is on the move. Since 2020, it has entered Europe, starting with Norway, a leader in EV adoption, then Sweden, Germany and France, navigating EU tariffs of up to 35.3%. “We’ll be in 60 countries by late 2024,” He Xiaopeng vowed in a press release, undeterred by trade challenges. In February 2025, XPeng shipped 300 right-hand drive X9s to Thailand, capitalising on Southeast Asia’s EV growth. Co-president Gu Hongdi told Bloomberg, “ASEAN’s low EV penetration and fast adoption are ideal for us.” XPeng aims for 50% of sales to come from overseas by 2033, backed by local charging infrastructure and tailored software.
The UK marks a pivotal chapter. In 2025, XPeng launched here with the G6 SUV and the X2, a concept car with gullwing doors that Wallpaper magazine called “a bold vision of tomorrow”. Showrooms in London and Manchester have drawn curious crowds, with the G6’s £23,000 starting price and 350-mile range appealing to families and commuters alike. The X2, while not yet in production, has sparked buzz for its futuristic design, hinting at XPeng’s flair for innovation. In a market where EVs like the Nissan Leaf (£26,000) and MG4 EV (£21,000), from Chinese-owned MG, compete fiercely, XPeng’s AI-driven features – such as predictive navigation and voice controls – could win over tech-savvy Britons. However, tariffs and brand unfamiliarity pose hurdles. “The UK loves innovation, but trust takes time,” an XPeng spokesperson told Autocar in March 2025. With plans to expand dealerships and partner with UK charging networks, XPeng is betting on its intelligent design to carve a niche.
Looking forward, XPeng’s plans are bold. In his 2024 letter shared widely online titled “2025 New Journey, Through the Storm, Keep Running!” He Xiaopeng set a goal of one million annual sales, up from 30,000 monthly in 2024, and Level 3 autonomy in all models by 2025. He’s investing in talent via the “Thousand Generals Plan” to train leaders and the “Explorer Plan” to inspire engineers. Globally, XPeng targets Asia, Europe, and potentially North America, despite trade barriers. AeroHT’s eVTOL work, while speculative, keeps XPeng forward-looking, with He Xiaopeng teasing “sky-bound mobility” at a 2024 tech summit.
From Guangzhou’s streets to Britain’s motorways, XPeng’s journey reflects China’s rise as an innovation hub. He Xiaopeng’s vision, backed by a stellar team and robust funding, has made XPeng a challenger to BYD, NIO, and Tesla. As it accelerates into a competitive future – on roads and, perhaps, in the air – XPeng’s blend of intelligence and accessibility signals a brand not just keeping up but leading the charge.
