Xpeng expands autonomous driving system, China’s answer to Tesla’s FSD, to all cities

“The year 2024 is marking a watershed for the development of autonomous driving,” He told a virtual briefing on Tuesday evening. “For Xpeng, our mission is to make our technologies accessible to people around the country.”

Compatible Xpeng cars in China and abroad can access the new software through an over-the-air update that became available on Tuesday evening.

X NGP enables vehicles to recognise traffic lights, turn, change lanes and overtake other vehicles. It was being tested in more than 300 mainland cities before the official announcement. Drivers must keep their hands on the steering wheel at all times because human intervention is still required under many circumstances.

X NGP is offered on the mainland for free. In the US, Tesla charges US$8,000 to install FSD, on top of a US$99 monthly subscription.

Xpeng, founded in 2014, launched X NGP early last year, but it could only be used in major cities like Shanghai, Shenzhen and Guangzhou. The company rolled the ADAS out to other cities at an orderly pace amid rising penetration of smart EVs on the mainland.

“A high level of autonomy is one driver of sales growth, since young motorists are now attracted by intelligent features of electric cars,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Tesla’s FSD has long been expected by drivers in China, and X NGP must step up a gear to lure more Chinese customers before the US carmaker puts its ADAS in operation here.”

At the end of May, Reuters reported that Tesla was preparing to register FSD with Chinese authorities, paving the way for it to be tested on mainland roads.

Xpeng delivered 141,601 vehicles to mainland buyers in 2023, up 17 per cent year on year.

Tesla, the front-runner in China’s premium EV segment, delivered 603,664 units on the mainland last year, up 37 per cent from 2022, making it the country’s second-largest market. In the US, the company’s largest market, sales increased by a quarter to 654,888 in 2023.

Xpeng plans to spend a record 3.5 billion yuan (US$483 million) in 2024 on developing intelligent cars, He said at the briefing.

The company will officially launch the Mona brand next month and unveil details about its growth strategy and development plan for the product line-up.

The brand’s models will be equipped with autonomous driving systems and priced at 100,000 yuan to 150,000 yuan, He told an EV forum in Beijing in March.