Study of Xpeng Automotive’s Development Under China’s Carbon Neutrality Policy

Enming Liang ()
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Enming Liang: The University of Illinois at Urbana-Champaign

A chapter in Proceedings of the 2022 3rd International Conference on Big Data Economy and Information Management (BDEIM 2022), 2023, pp 340-352 from Springer

Abstract: Abstract Nearly all nations have faced environmental degradation, global warming, and carbon emissions. On December 2015, 171 nations committed to limiting the increase in average global temperature to no more than 2 ℃ above pre-industrial levels, aiming for a limit of 1.5 ℃, and achieving a global “carbon-neutral” target between the year of 2050 and 2100. Under this scenario, the Chinese government has paid attention to environmentally-friendly industries such as photovoltaic, wind power, biomass, and electric vehicles (EV). This study analyzes Chinese leading EV company, Xpeng Auto Group, and its financial reports and market performance over the past few years. The research on the annual and quarter financial reports shows that Xpeng performs well in terms of financial structure but was poor in profit-generating ability. Regarding the market environment, Xpeng benefits from China’s carbon neutrality and other environmental policy, and rising oil prices will encourage more customers to purchase electric cars. In addition, Xpeng faces technical bottlenecks in intelligent assisted driving systems and foreign competitors. Through financial analysis and SWOT analysis, this paper provides a reference for Xpeng and other electric vehicle companies to develop strategies when facing upcoming challenges.

Keywords: Electric Vehicle; Carbon Neutrality; Global Warming; Debt-to-Equity Ratio (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-124-1_41

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DOI: 10.2991/978-94-6463-124-1_41

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