The new Xpeng P7 car is on display at the Xpeng Motors flagship store in the shopping mall. The Xpeng P7 is one of two popular models of Xpeng motors.
Zhang Peng | LightRocket | Getty Images
Guangzhou, China — The president of Xpeng says Chinese electric car makers are “on the right side of the regulation” as Chinese authorities are tightening data privacy rules, especially for automakers.
Based in Guangzhou, the company is one of many start-ups competing to challenge Tesla in the world’s largest electric vehicle market.
Automakers are collecting more and more data to train autonomous driving and other so-called “smart” function algorithms in their cars.
However, Chinese regulators are increasingly concerned about the amount of data collected by companies in different industries.
“I think our industry is actually described as an industry supported by the government. They make this an important infrastructure, while at the same time manufacturing, smart technology, and even the government is carbon neutral. We believe it is a key component of the growth of the agenda. Xpeng President Brian Gu told CNBC in an interview on Friday.
“So we are actually on the right side of regulation.”
This month, China passed a major data protection law called the Personal Information Protection Law (PIPL), which works in parallel with cybersecurity and data security laws.
China’s cyberspace regulator also announced a draft rule on data security management for automakers this month. Authorities urged car companies to reduce “chaotic collection and misuse” of car data.
China’s regulatory measures have lost billions of dollars in the value of Internet companies in recent months, but Chinese electric vehicle companies remain relatively intact and stock prices are rebounding.
Indeed, the development of electric vehicles is a national priority through China, which has supported industrial development through incentives such as subsidies.
Gu said Xpeng is “a very robust organization … focused on data security” and is in contact with government agencies on this topic.
Xpeng has developed its own limited self-driving feature for its vehicles called XPILOT. In such a system, training requires a large amount of data. Gu said the new data regulations for automakers are designed “not to stop innovation,” but “to ensure that (data) is processed … carefully.”
Strengthening SEC requirements
Securities and Exchange Commission (SEC) Chairman Gary Gensler told Bloomberg this week that US-listed Chinese companies need to better inform investors about regulatory and political risks. It’s unclear at this point what it will entail, but Gu said Xpeng is monitoring the situation.
“From now on, we will definitely strengthen all the disclosures needed to meet the regulatory requirements of China and the United States,” Gu said.
On Thursday, Xpeng recorded total sales of 3.76 billion yuan ($ 582.5 million) in the second quarter. This is an increase of 536.7% over the previous year. However, the company’s net loss increased in the quarter as marketing and capacity expanded.
On Tuesday, the company began shipping its flagship product, the P7 sedan, to its first international market, Norway.
Gu said Europe and the surrounding Nordic countries will be the first markets for the company to expand outside of China due to its high penetration and excellent infrastructure for electric vehicles.
“But overall, I think we have the vision of first addressing the wider regions of other European countries, as well as the markets of other developed countries,” Gu said. “I think developing markets will probably be slightly behind, as demand is probably slower than in developed countries.”
Chinese electric car maker Xpeng: Exec on the “right” side of the regulation
Source link Chinese electric car maker Xpeng: Exec on the “right” side of the regulation