XPeng announced on Tuesday that it has extended its partnership with SunCar Technology Group, a cloud-based auto insurance services provider in China — with which the brand has collaborated since late 2022.
SunCar utilizes AI and big data analytics to customize insurance solutions for several carmakers in China.
The announcement comes after XPeng launched its newest SUV, the G7 — the first fully new model the brand unveiled this year, as it focused primarily on refreshing its lineup, first across China and then in overseas markets.
Last year, the company established the Anji AI Technology Service Center, where it co-develops insurance products with its partners to further “increase their new policies, renewals, and extended warranties sales.”
Last week, SunCar announced that it had also strengthened its cooperation with Xiaomi, which has just launched its second model, the YU7 SUV.
The two have co-developed “a fully intelligent and digitized auto insurance service system” for Xiaomi‘s EVs, with the insurance provider expecting “their business with Xiaomi to double in 2025,” according to a statement.
Earlier this year, the service provider had also extended its collaboration with Stellantis-backed Leapmotor, developing and operating an insurance management platform to include into the brand’s app ecosystem.
“This contract transforms our relationship with Leapmotor from service provider to technology partner,” Ye Zaichang, CEO of SunCar, stated.
In late April, SunCar expanded the agreement with Tesla in China, active since last year.
The company developed an e-insurance system “tailored to streamline the insurance renewal process,” as there were “over 2 million” Tesla EVs circulating in China by the time of writing.
“Premium volume surged from an initial $400,000 in January 2024 to approximately $40 million by year-end, marking a hundredfold increase across 48 Chinese cities,” the company stated.
By the end of 2024, the company had cooperated with several automakers, including premium brands Nio and Zeekr, family-oriented Li Auto, state-owned SAIC Motor, among others.
In June, XPeng delivered 34,611 vehicles globally, up by 224% year over year and by 3% sequentially. The brand set an annual target of 380,000 vehicle deliveries and reached 53% of the goal in the first half of 2025.
In the first week of June, registrations in China fell by 42% — from a yearly record of 11,200 to 6,500 units.
The sales decline follows a typical quarterly cycle, with figures generally experiencing a significant increase towards the end of each quarter, followed by a sharp drop at the beginning of the subsequent one.
