At the end of 2020, the Chinese government presented the 2021/2035 development plan for the new energy vehicle sector with the aim of making the China the protagonist ofautomotive industry. In 2020, sales of these new vehicles in China increased by 10,9% on an annual basis, the new plan expects these vehicles to account for 20% of new car sales by 2025. In January 2021, according to the data released by the China Association of Automobile Manufacturers (Caam), 180,000 new energy cars were sold in China (compared to 2.5 million total cars) with an increase of 239%. If we think that the Chinese fleet consists of 281 million cars, we can get an idea of how promising this business is.
Xpeng, Nio, Li Auto are only three of the main EVs (electric vehicle) Chinese competitors of Tesla. In 2020, Tesla delivered 500,000 cars, five times as many as those of these three Chinese companies which, however, have a huge market on their side (and which will not stop with China, with plans both in Europe than in USA). Xpeng makes beautiful cars and the numbers for the first months of 2021 are impressive in terms of growth: over 600% compared to the same months of 2020 (with 2,000 vehicles delivered in February alone). Xpeng is from the rich Chinese province of Guangdong and recently received 500 million in funding yuan (76.9 million dollars) by the financial arm of the province itself (the GUangdong Yuecai Investment Holdings Co).