Chinese EV Maker XPeng Gets Ambitious About the MENA Market in 2024

EV maker XPeng Motor from China announced new additional dealer partnerships in 2024, including with Ali&Sons in the UAE, RAYA Group in Egypt, T Gargour&Fils Group in Jordan, and Gargour Asia SAL Group in Lebanon.

By Qian Zhou

Chinese electric vehicle (EV) maker XPeng Motor has established a strategic partnership with Ali&Sons, a dealership group in the United Arab Emirates (UAE).

The partnership marks XPeng’s further penetration into the international market, especially in the Middle East. Through the cooperation with Ali&Sons, XPeng plans to launch several models in the region to meet local consumers’ demand for high-performance, intelligent electric vehicles. For XPeng, this cooperation will not only help to enhance brand awareness, but also lay the foundation for greater success globally.

XPeng global expansion plan 2.0: 2024 announcements

2024 will be a tremendous year for XPeng’s global expansion.

XPeng began its expansion in Europe as early as 2021, starting in Norway. In the following years, Xpeng has expanded its global reach to Denmark, The Netherlands, and Sweden.

In 2024, XPeng launched its global expansion plan 2.0, under which XPeng will endeavor to enter new markets in the Middle East and Africa region.

In addition to the partnership with Ali&Sons in the UAE, XPeng also announced four other dealer partnerships with Egypt’s RAYA Group, Azerbaijan’s SR Group, Jordan’s T Gargour&Fils Group, and Lebanon’s Gargour Asia SAL Group. These partners have extensive sales networks and channel resources in the local market, which will help XPeng to quickly enter the market and improve brand awareness.

XPeng plans to introduce several of its models to the Middle East and African markets, including SUV models such as the XPeng G6 and G9, and possibly other models. These models will be equipped with advanced technologies such as the intelligent Xmart OS 4.0 on-board intelligent system, XNet deep vision neural network, and BEV vision perception to meet local consumers’ demand for high-performance, intelligent electric vehicles. It is reported that these models will be delivered in the said countries from the second quarter.

In order to better adapt to the needs and culture of the Central and East African market, it’s also reported XPeng will actively promote localized operations and services. This may include setting up local service centers, providing multilingual customer service, and conducting localized marketing campaigns.

China firms eyeing on Middle East for growth

Given the slower growth in the domestic market and the increasing geopolitical tensions with the West, Chinese firms have been eyeing the Middle East markets for growth. This also happens as the bilateral relationships between China and Middle East countries have grown in recent years.

There are several reasons why Chinese companies are heavily investing in the Middle East:

• Rich natural resources and market potential: The Middle East is rich in natural resources such as oil and natural gas, but also has a huge and wealthy consumer market. These resources and market potential provide huge development opportunities for enterprises.
• Geographical advantage: The Middle East region is located at the intersection of three continents – Asia, Europe, and Africa, with unique geographical advantages. This allows companies investing in the region to better expand their markets and supply chains and achieve a global presence.
• Policy support: The Chinese government has always encouraged enterprises to “go global” and support enterprises to participate in international competition and cooperation. At the same time, some countries in the Middle East have also introduced policies to attract foreign investment, providing a good investment environment for Chinese enterprises.
• Complementary cooperation: Chinese enterprises have advantages in technology, management, and capital, while the Middle East has advantages in resources and markets. Through complementary cooperation, the two sides can achieve mutual benefit and win-win results and jointly promote economic development.
• Changing global economic landscape: With the changes in the global economic landscape, Chinese enterprises need to find new growth points and markets. As an emerging market with great development potential and opportunities, the Middle East has become one of the important destinations for Chinese enterprises to invest overseas.

Finally, Middle Eastern countries have been actively seeking to achieve green transformation of their economies. This transition provides opportunities for Chinese companies to participate in green infrastructure projects and export new energy equipment and services.

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