Despite doubts and ridicule, Li Xiang has made the extended-range technology route shine brightly, and more and more automakers are following Li Auto's path.

He Xiaopeng has also unleashed a powerful weapon, leading Xpeng Motors into Li Auto's backyard.

1. Li Xiang's prophecy comes true

At the beginning of his automotive venture, after failing with the micro-pure electric vehicle SEV, Li Xiang quickly pivoted and became the first in the industry to champion the extended-range new energy vehicle banner.

Initially, the industry ridiculed Li Auto's extended-range technology route, with executives from automakers including Volkswagen and Great Wall Motor lambasting it as outdated and backward technology.

However, Li Xiang remained unfazed and even lashed out at these doubters with harsh words.

The continuous popularity and success of the Li ONE and subsequent L series models have made Li Auto the third profitable new energy automaker globally, after Tesla and BYD, earning Li Xiang much respect.

With the great success of their products, Li Xiang has proven that the extended-range technology route holds great potential, and he even predicted that other automakers would follow suit.

Last November, Li Xiang posted on social media, "Chinese independent automakers who still insist on multi-speed PHEV models will switch to the extended-range technology route in the next one to two years. This prediction can be verified in 2025."

It seems he was right. New forces such as Huawei Hongmeng, Leapmotor, Nezha, as well as traditional automakers like Changan, Beijing Automotive Group, Geely, Dongfeng, Guangzhou Automobile Group, and SAIC Motor, have all begun to plan and deploy extended-range technology products.

2. He Xiaopeng unleashes a powerful weapon

With Xpeng's high-profile entry, the extended-range camp has gained another formidable player.

It is reported that Xpeng had been researching extended-range vehicle solutions internally for a long time but had not yet made a final decision to implement them. However, since this year, Xpeng's management has gradually become clearer about their stance on extended-range vehicles.

During the first-quarter earnings call, He Xiaopeng stated that customers have a genuine demand for hybrids, and Xpeng is considering what the next-generation extended-range vehicle will look like.

It is rumored that Xpeng's management has reached a consensus: "The market ceiling for extended-range products is still high, and the return on investment is not a problem." Xpeng's extended-range vehicles are poised to strike.

It is reported that Xpeng's first extended-range vehicle is under full development, and core components have already been sourced for the first half of this year.

Among them, the core component, the range extender, has been confirmed to be sourced from Dongan Engine, which is also a supplier for Li Auto's range extenders.

It is expected that mass production will commence at Xpeng's second factory in Huangpu, Guangzhou, in the second half of next year, with a latest possible timeline of the fourth quarter of next year.

An informed source revealed that He Xiaopeng has high expectations for the extended-range vehicle and has clearly stated that transitional range-extending technology solutions are not acceptable. Instead, he hopes for technological breakthroughs that will allow Xpeng's extended-range vehicles to lead the industry upon launch.

3. Directly attacking Li Auto's backyard

It is reported that Xpeng's first extended-range vehicle is a large SUV with an internal project code of G01, developed based on the G9 prototype and targeting the price range above RMB 200,000.

If this information is true, Li Auto will be in for a tough time.

Currently, Li Auto is the absolute dominant player in the extended-range market, with its best-selling model, the Li L6, priced in the RMB 200,000+ range. All of these fall within the scope of Xpeng's first extended-range product.

Previously, new forces like Leapmotor and Nezha, who ventured into extended-range vehicles, were not taken seriously by Li Auto. However, with Xpeng, another leading new force, entering the fray, Li Auto cannot afford to take it lightly.

As a pioneer in extended-range vehicles, Li Auto has accumulated rich experience. If follow-up players like Xpeng merely imitate follow the trend and develop extended-range vehicles, it is unlikely they will surpass Li Auto.

New energy vehicle technology is evolving rapidly, and while the extended-range concept may seem simple, it has undergone multiple technological transformations. Creating a leading extended-range solution that is "painless" is no easy feat.

However, Xpeng Motors has always been known for its technological prowess. If it can indeed make breakthroughs in extended-range technology, addressing the inherent pain points of the technology while leveraging its own technological advantages to create a competitive edge, it will undoubtedly put immense pressure on Li Auto.

In fact, Xpeng needs extended-range vehicles more than any other automaker.

In the first eight months of this year, Xpeng's average monthly deliveries were less than 10,000 units, and even in August, it fell short of 15,000 units. In contrast, Li Auto delivered an average of over 30,000 units per month during the same period, reaching around 50,000 units in recent months.

Although sales of Xpeng Motors have been greatly boosted by the popular new model MONA M03, the company urgently needs a new lever to further boost sales.

The extended-range vehicle, which has already been proven in the market, is Xpeng's best powerful weapon. Whether Xpeng can directly attack Li Auto's backyard depends on how far it can take its extended-range vehicles.