DETROIT (Reuters) – Chinese electric vehicle maker Xpeng Inc would consider acquiring less successful rivals to expand production capacity in the future, company President Brian Gu told reporters during a conference call.
Xpeng is building two new factories in China. At the same time, the Chinese government is signaling it wants to see consolidation in the Chinese electric vehicle sector to rein in construction of unproductive factories.
“If we need additional capacity in a year or two…we may think about using M&A as a tool to get more capacity,” Gu said.
Guangzhou-based Xpeng also said that its new P5 compact sedan model will be priced between 157,900 yuan ($24,549) and 223,900 yuan after receiving government subsidies. It is now selling P7 sedans and G3i sport-utility vehicles.
($1 = 6.4320 Chinese yuan renminbi)
(Reporting By Joe White; editing by David Evans)