XPeng says BYD isn't the competition as it focuses on AI 

XPeng says the current wave of Chinese car brands entering Australia will eventually give way to a smaller group of winners, arguing future success will depend on becoming an AI company as much as an automotive manufacturer. 

Asked whether Australia's growing list of Chinese brands could all succeed, XPeng executives said the market would eventually become "more concentrated at the top" as weaker players fell away. 

They stopped short of predicting which brands would disappear but argued the next generation of automotive leaders would need far more than manufacturing expertise. 

"You need to be both an automotive company and a tech company," vice chairman and president Brian Wu said. "You need to be an AI company as well as an advanced manufacturer." 

He compared today's automotive landscape to the smartphone industry, where technological disruption saw some brands emerge as global leaders while others faded away. 

The company believes artificial intelligence and intelligent driving technology will ultimately become a bigger differentiator than simply launching more models or competing on price. 

It pointed to its broader AI ecosystem as proof of that strategy, with investments spanning humanoid robots, autonomous robotaxis and its personal flying car division, which has already amassed over 7000 pre-orders in China ahead of production. 

The company says those projects are built on the same AI and software architecture as its vehicles, with Australia's roadmap eventually extending beyond cars.

Subject to local regulations, XPeng plans to introduce its autonomous driving technology locally before the end of 2027, while saying Australia could also become one of the first international markets to receive its commercial humanoid robot once it reaches production. 

That philosophy also underpins the brand's own positioning, with the company describing itself as a premium technology brand rather than simply another Chinese automaker. 

"Our brand is perceived as a premium brand – technology, but premium," XPeng international development and service centres boss Alex Tang said.

Tang said XPeng was aiming to become "a leader in the AI car segment", positioning it alongside Tesla rather than mainstream rivals. 

When asked whether BYD was a competitor, Tang was blunt: "We really don't think BYD is our competitor. 

"We have different positioning, different products and different customers." 

Instead, the AI company said many of its buyers are switching from Tesla or established premium marques including BMW, Mercedes-Benz and Audi, noting the G6 had become a popular alternative to the Tesla Model Y in several European markets. 

XPeng now has the task of backing up those ambitions after taking direct control of its Australian operations following the collapse of its relationship with former distributor TrueEV.

Five new models are due to launch locally within six months as part of the brand's biggest product offensive yet.

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