BYD and
XPeng
shares rose on Monday as the two Chinese car makers prepare to take center stage at one of the world’s largest auto shows. They’ll be competing for attention with
Tesla,
which is making its first appearance at Munich, Germany’s IAA Mobility event in 10 years.
XPeng
(ticker: XPEV) is appearing for the first time, shortly after receiving a $700 million investment from Germany’s Volkswagen.
The Chinese start-up said Monday that it would enter the German market for the first time in 2024 with its P7 sports sedan and G9 SUV models. It is already present in four other European markets.
“Today represents an important step on our international expansion journey,” said Brian Gu, vice chairman of XPeng in a company statement. “XPeng is entering one of the most competitive automotive markets in the world, with customers that expect the absolute highest standards.”
XPeng stock rose 2.4% in Hong Kong on Monday. The company said Friday that it delivered 13,690 cars in August, compared with 11,008 in July.
BYD
(1211.HK) will be showing six electric vehicles for the European market at IAA Mobility, which officially kicks off on Tuesday. A highlight will likely be the European introduction of its luxury brand Denza –a joint venture with Germany’s
Mercedes-Benz Group
(MBG.Germany)–with its D9 electric minivan.
BYD shares traded up 3.1% in Hong Kong on Monday. Last week it said its battery-electric vehicle sales in August were up 88% from the same period the prior year.
Europe is an important battleground in the EV market for Chinese brands,
Tesla
(TSLA) and its domestic manufacturers, with higher rates of adoption of electric vehicles than the U.S. and lower regulatory and tariff-based barriers to entry.
Meanwhile, Tesla’s European ambitions are also likely to be in focus as it makes its first IAA Mobility appearance since 2013, in a rare appearance for the U.S. car maker at an auto show.
Tesla is likely to show off its updated Model 3 electric vehicle which made its debut in China last week with a new interior and a longer range from each charge, but also an increased price. The upgraded Model 3 is available in China and Europe but not in the U.S.
Write to Adam Clark at [email protected]
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