BEIJING, China: Chinese electric vehicle maker Xpeng has launched a new self-developed vehicle production platform, the Smart Electric Platform Architecture 2.0, aimed at reducing development and manufacturing costs for its upcoming models.

According to Xpeng president Brian Gu, SEPA 2.0 will enable it to reduce costs of powertrain systems, including batteries, by 25 percent, and the intelligent driving system by 50 percent by the end of 2024, which will give Xpeng an edge against its rivals in a highly competitive market.

"Since early this year, a number of players have been launching aggressive price cuts. The focus on the capability of offering attractive products at affordable prices becomes even more important," Gu said.

Xpeng said it will build its G6 SUV, which will debut at the Shanghai auto show, as the first model to be built on SEPA 2.0.

"The architecture includes front and rear integrated aluminum die casting technologies and integrating battery packs into the car body, which will improve the manufacturing efficiency and reduce the weight of the vehicles,' the company added.

By comparison, rival Tesla uses gigapresses, which are large casting machines, to make large single pieces of vehicle underbodies.

To boost demand, Tesla cut prices globally, including in China, in January. In March, Chief Executive Officer Elon Musk said that demand was limited by affordability.

Meanwhile, Xpeng's Chief Executive He Xiaopeng also said that to survive beyond a decade, automakers must ensure global sales of 3 million units annually.

However, in the first quarter of 2023, Xpeng's car sales declined nearly 50 percent, performing worse that the overall Chinese EV sector.