Shanghai (ZXZC)- On May 18, Chinese EV startup XPeng Inc. set up a new sales service subsidiary in Zibo, Shandong province as the company continues expanding its sales network.

The newborn subsidiary, named Zibo Xiaopeng Automobile Sales Service Co.,Ltd., involves a registered capital of 10 million yuan ($1.555 million) and is wholly owned by Xiaopeng Automobile Sales Co.,Ltd., according to the corporate data platform Tianyancha. Its business scope extends to cover the sale of new energy vehicles, the car rental service, the wholesale of auto parts, and other items.

Prior to the establishment of the Zibo-based company, XPeng has also built similar sales service subsidiaries in Guangzhou, Maoming, Wenzhou, Beihai, and Xining this year.

XPeng delivered a total of 5,147 new vehicles in April 2021, representing a 286% surge year on year. Among vehicles sold last month, there were 2,995 P7s and 2,152 G3s. As of April 30, 2021, XPeng's year-to-date deliveries amounted to 18,487 units, soaring 413% from a year earlier.

XPeng P7 Wing edition; photo credit: XPeng

As part of efforts to expand product matrix, the startup began to deliver the P7 Wing edition and the lithium iron phosphate (LFP) battery-powered G3 in April. Delivery of the LFP battery-powered P7 will kick off in May as scheduled.

Moreover, XPeng launched its third production model, the LiDAR-enabled P5 sedan, in April and plans to start the delivery in the fourth quarter of 2021.

To shore up the growing sales and delivery of new products, XPeng is vigorously expanding and improving its sales networks. In April, it formed a strategic partnership with Zhongsheng Group, a leading automobile dealership group in China, to further expand its sales and services network while strengthening after-sales service capabilities.

As of March 31, 2021, XPeng's physical sales and service network consisted of 178 stores and 61 service centers, covering 70 cities, according to XPeng's latest quarterly financial results. The company plans to increase the cumulative number of its sales outlets to around 300 by the end of 2021, covering over 110 cities.