Xpeng says Tesla, not BYD, is its real rival

Xpeng New Zealand has announced a slew of new models and a rollout of advanced hands-free driving technology, but says it’s not going after Chinese rival BYD.

Speaking to media including CarExpert in Melbourne, Xpeng head of international development Alex Tang said the high sales of BYD – which has posted phenomenal growth in New Zealand, becoming a top-five passenger brand here – are not the brand’s target.

“We really don't think BYD is our competitor, not only in China but globally, because we do have different positioning. Not only the brand but also the products, and the customers are always different.”

Xpeng this week announced a planned rollout of new models, including both electric vehicles (EVs) and ‘Kunpeng’ extended-range electric vehicles (EREVs), as well as plans for ultra-fast charging and vehicle-to-grid (V2G) infrastructure investment for Australia that's expected to make its way here in 2027.

In a keynote address, Xpeng vice chairman and president Brian Gu also announced plans for the brand’s Iron humanoid robot, set for global release in 2027, and confirmed the Xpeng Flying Car and Robotaxi are planned for Australia and New Zealand when regulations allow.

Together, these form what the automaker describes as its ‘Physical AI ecosystem’. It explained Physical AI as using AI technology to create movement beyond the digital world.

“I think Australia is first of all a large market, the size market is probably the fourth largest right-hand driving market in the world, and also I think it's a market that fits very well with Xpeng philosophy,” said Mr Gu.

The Iron humanoid robot and Flying Car were touted at the brand event in Melbourne, where Mr Gu and Mr Tang explained the company’s local ambitions, which differ from those of volume brand BYD.

“We are really trying to lead the development of the AI car segments that supply the best technology from the global to the local customers,” Mr Tang said.

“Globally, now of course Tesla is one of the competitors. I say this because, in terms of the technology that Brian introduced, we consider [Tesla] as one of the tier one players globally.”

While Xpeng Australia wouldn’t share a specific sales target or ranking it hopes to achieve, Mr Tang made it clear the goal isn’t necessarily to outsell Tesla.

In some recent months, the brand has outsold a globally resurgent Tesla in Norway, Denmark and the Netherlands, as well as in its home market of China.

In Europe, its lineup includes the G6 sold here, as well as the L03 small SUV and X9 people mover, both confirmed for New Zealand later in 2026.

“We do have some markets where we outsell Tesla, frankly speaking, and some markets, of course, Tesla has more sales. But at the end of the day, what we are trying to create is affordable technology.

“‘Physical AI technology for all’ is our slogan, but it's also our mission that we want to more customers access to the brand to the latest technology. So, we are not only targeting some niche market, but mainstream customers that can afford the best technology.”

Mr Tang said Xpeng’s European operations have attracted customers from brands including BMW, Audi and Lexus, with the latter announcing an ecosystem of its own at the Tokyo motor show in October 2025.

“We are quite happy that we can we can have the customers comes from not only the Lexus premium brands but also the Tesla brand,” Mr Tang said.

“But we are creating a new positioning and a new value for the customers … we are really creating a segment and trying to be a leader in the new segment. This is our mission.”