XPeng Inc. Expands Operations and Faces Market Pressures

XPeng Inc. (ticker: XPEV on the Hong Kong Stock Exchange) announced several strategic developments in mid‑October 2025. The company’s latest vehicle, the updated G6 SUV, has entered Malaysia, its second right‑hand drive market. Simultaneously, XPeng is extending its after‑sales network with a new auto‑parts warehouse in Dubai, while a key former executive of its smart‑driving division has departed.

1. Updated G6 SUV Launches in Malaysia

On 17 October 2025, XPeng released the revised G6 SUV in Malaysia, marking the company’s second right‑hand drive (RHD) market outside China. The launch is part of XPeng’s broader strategy to penetrate Southeast Asian markets with its smart, electric vehicles. No additional pricing or technical details were disclosed in the announcement.

2. Departure of Former Head of Smart Driving

The same day, a former head of XPeng’s smart‑driving team confirmed his resignation. The executive, who had overseen the development of autonomous and assisted driving technologies, left the company following a period of internal restructuring. XPeng has not issued a statement regarding the impact of this departure on its autonomous driving roadmap.

3. Establishment of a Regional Auto‑Parts Warehouse in Dubai

XPeng partnered with JoyLogistics, the supply‑chain arm of JINGDONG Logistics, to launch a regional auto‑parts warehouse in Dubai’s Jebel Ali Free Zone (JAFZA). The facility will hold over 1,000 auto‑parts and is designed to support maintenance operations for XPeng vehicles sold across the Middle East. The announcement was made on 17 October 2025 and highlights XPeng’s effort to strengthen its after‑sales infrastructure in the region.

4. Impact of US‑China Trade Tensions on Share Price

XPeng’s shares, listed on the New York Stock Exchange under the ticker XPEV, fell on 17 October 2025 amid broader pressure on Chinese technology stocks. The decline coincided with escalating trade disputes between the United States and China. The drop was part of a broader sell‑off that affected other Chinese automakers such as NIO, Li Auto, and BYD. Market commentary suggested that geopolitical tensions and trade policy uncertainty were primary drivers of the sell‑off.

5. Market Context and Company Valuation

At the close of 16 October 2025, XPeng’s share price on the Hong Kong Stock Exchange was HKD 79.20. The company’s market capitalization stood at approximately HKD 123.6 billion. Over the past 12 months, XPeng’s stock has ranged from a low of HKD 40.90 (24 October 2024) to a high of HKD 106.00 (11 March 2025).

6. Summary

XPeng Inc. continues to expand its product portfolio and after‑sales network, with the launch of the G6 SUV in Malaysia and the opening of a regional parts warehouse in Dubai. However, the company faces short‑term headwinds from geopolitical tensions that are impacting the valuation of Chinese technology stocks in global markets. The recent departure of a senior smart‑driving executive adds an additional layer of uncertainty to XPeng’s autonomous driving ambitions.