the boss of the electric car that recharges in a flash predicts a sharp drop in prices

The year 2025 is just starting, and there is no doubt that it should be particularly intense. Indeed, competition between manufacturers should become even stronger, while competition from China could further increase. And that's not all, because the electric car market is expected to continue to grow.

A raging price war

In a previous article, we announced to you that 2025 should be the year of the boom in electric cars, after months of lackluster performance, whether in France or in the rest of Europe and the world. And inevitably, what explains the increased sales is also the fact that the offer would be more and more extensivenotably thanks to the rise of Chinese manufacturers. In this regard, one of them offers us his forecasts for the coming months.

This is Xpeng, whose boss He Xiaopeng sent an internal letter to his employees, telling them to “ prepare for intense competition “. This has the merit of being particularly clear. But actually, why such a statement? And done, according to the businessman, relayed by the specialized site CNEVPostthe price war should return with a vengeance during this year. And in fact, she should even leave in January.

The latter explains that “ the market will definitely see fiercer competition in 2025, and I can even make a bold prediction that the price war will ignite from January “. This was really a reminder started at the beginning of 2023with Tesla having dropped the prices of its Model 3 and Model Y by 13,000 euros overnight. Many manufacturers then followed, such as Ford, Lucid and VinFast.

And from now on, it is no longer really against Elon Musk's firm that automobile brands will have to fight, but rather against new Chinese companies. There are currently 150 manufacturers in the Middle Kingdom, but only two are currently profitable, namely Li Auto and BYD. Some could disappear according to He Xiaoping, who explains that “ China's automobile industry will enter a phase of elimination “. According to him, the weakest brands in terms of technology “ will lose the opportunity for sustainable growth ».

The rise of AI in the automobile

Because competition should be particularly fierce this year, particularly because Chinese manufacturers have tendency to push prices down. The challenge will now be to display competitive prices, without cutting into profits. Which may not be obvious, due to the increase in customs duties decreed by the European Union for Chinese electric cars. But this is not the only challenge they will have to face. According to Xpeng, technology will also be at the heart of concerns.

Among them, the development of artificial intelligence, which is expected to increase considerably over the coming years. The manufacturer particularly believes in this, particularly with its new Mona M03 which makes extensive use of this cutting-edge technology. According to He Xiaopeng, his brand “ will be a leading global automotive AI company, product leaderbusiness, organization and globalization “. In addition, he is aware that Xpeng will have to improve its “ systematization capabilities » in order to gain strength.

Finally, the brand founded in 2014 will strongly accelerate its international development over the coming months, and Europe should logically be part of its plans. Xpeng aims to “ half of its sales come from abroad » over the next 10 years. The company wants to become the leading Chinese brand in the electric market, thus dethroning BYD. And this is thanks in particular to the launch ofat least one new model or a restyling almost every quarter this year.