Electric vehicle maker Xpeng has expanded use of its self-driving system to all cities in mainland China in a bid to attract more local users ahead of the China debut of Tesla’s competing software, known as Full Self-Driving (FSD).

With the move, Guangzhou-based Xpeng becomes the first mainland carmaker to make a semi-autonomous driving system operational nationwide.

The latest version of the X NGP (Xpeng navigation guided pilot) advanced driver assistance system (ADAS) will take a big leap this year to promote self-driving technologies in the world’s largest automotive and EV market, according to He Xiaopeng, Xpeng’s co-founder and CEO.

“The year 2024 is marking a watershed for the development of autonomous driving,” He told a virtual briefing on Tuesday evening. “For Xpeng, our mission is to make our technologies accessible to people around the country.”

Compatible Xpeng cars in China and abroad can access the new software through an over-the-air update that became available on Tuesday evening.

X NGP enables vehicles to recognise traffic lights, turn, change lanes and overtake other vehicles. It was being tested in more than 300 mainland cities before the official announcement. Drivers must keep their hands on the steering wheel at all times because human intervention is still required under many circumstances.

Xpeng, a partner of Volkswagen Group, is viewed as a Chinese leader in developing self-driving technologies, and X NGP is seen as the country’s answer to Tesla’s FSD, which will not be tested in China until the end of 2024.

X NGP is offered on the mainland for free. In the US, Tesla charges US$8,000 to install FSD, on top of a US$99 monthly subscription.

Xpeng, founded in 2014, launched X NGP early last year, but it could only be used in major cities like Shanghai, Shenzhen and Guangzhou. The company rolled the ADAS out to other cities at an orderly pace amid rising penetration of smart EVs on the mainland.

“A high level of autonomy is one driver of sales growth, since young motorists are now attracted by intelligent features of electric cars,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “Tesla’s FSD has long been expected by drivers in China, and X NGP must step up a gear to lure more Chinese customers before the US carmaker puts its ADAS in operation here.”

At the end of May, Reuters reported that Tesla was preparing to register FSD with Chinese authorities, paving the way for it to be tested on mainland roads.

Xpeng delivered 141,601 vehicles to mainland buyers in 2023, up 17% year on year.

Tesla, the front-runner in China’s premium EV segment, delivered 603,664 units on the mainland last year, up 37% from 2022, making it the country’s second-largest market. In the US, the company’s largest market, sales increased by a quarter to 654,888 in 2023.

Xpeng plans to spend a record 3.5bil yuan in 2024 on developing intelligent cars, He said at the briefing.

Last month, the company unveiled its first model under the new Mona sub-brand, as it explores the compact car segment in a challenge to market leader BYD.

The company will officially launch the Mona brand next month and unveil details about its growth strategy and development plan for the product line-up.

The brand’s models will be equipped with autonomous driving systems and priced at 100,000 yuan to 150,000 yuan , He told an EV forum in Beijing in March.

 - SCMP