By Jiahui Huang

Chinese electric-vehicle maker XPeng is gearing up to sell its cars in Hong Kong and Macau, part of efforts to expand beyond the overcrowded market in mainland China.

The Guangzhou-based company, which competes with the likes of heavyweights such as BYD and Tesla, said in a statement Wednesday that it is entering the Hong Kong market via a dealer partnership with Malaysia's Sime Darby Motors.

XPeng's shares closed 7.7% higher at 32.15 Hong Kong dollars (US$4.11) after the announcement.

"Entry into Hong Kong is a strategic next step for XPeng's business expansion," the company said.

XPeng will make its Hong Kong debut in mid-May with its latest electric sport utility vehicle, the G6, and its flagship seven-seater, the X9 multi-purpose vehicle. Delivery of both models is due to start from the third quarter.

The company is also partnering with motor group Xin Kang Heng Holding to enter Macau, preparing to offer four of its models--the G9, X9, G6 and P7i--there. Delivery of left-hand drive models will start in May, XPeng said.

Xin Kang Heng distributes Honda, Nissan, Infiniti and other brands in Macau, with over a 22% share of the local automotive market, according to the statement. Sime Darby Motors is the automotive arm of conglomerate Sime Darby Bhd.

"Due to competition dynamics in China, trying to go overseas is always a good choice for OEMs (original equipment manufacturers)," Nomura equity analyst Joel Ying told Dow Jones Newswires, adding that the company's business in mainland China could get a boost from recognition in the global market.

The Chinese EV maker didn't provide a price tag for the G6 and X9 in Hong Kong.

Daiwa equity analyst Kelvin Lau says XPeng's ability to get a slice of the market in Hong Kong and Macau would depend on pricing.

Other Chinese EV makers that are already in Hong Kong include BYD, Great Wall Motor and state-owned SAIC Motor, among others.

XPeng's G6 competes against Tesla's Model Y in China's EV market. The G6 is priced between 209,900 yuan (US$29,021) and CNY276,900, while the Model Y has a price tag of CNY263,900 to CNY368,900.

XPeng entered the Malaysian market via a partnership with local car dealer Bermaz Auto last month. It also announced a long-term strategic partnership in Thailand with dealer group Neo Mobility Asia two weeks ago at the Bangkok International Motor Show.

Write to Jiahui Huang at

(END) Dow Jones Newswires

04-10-24 0546ET