Chinese electric vehicle manufacturer Xpeng is reportedly preparing to enter the Philippine market through Inchcape, as the automotive distributor reshapes its local brand portfolio.

According to media sources, Xpeng is expected to be introduced in the country by Inchcape Philippines, the joint venture between London-based Inchcape and the CATS Group, led by automotive entrepreneur Felix Ang.

The reported market entry has not yet been officially confirmed. Requests by the media for details from Inchcape Philippines have not received a response.

Xpeng is a Chinese new energy vehicle manufacturer that competes with Tesla, BYD, Nio and Li Auto in the premium electric vehicle segment.

Founded in 2014 by entrepreneur He Xiaopeng and headquartered in Guangzhou, Xpeng is listed in New York and Hong Kong. The company develops battery electric vehicles equipped with advanced driver-assistance systems, over-the-air software updates and artificial intelligence features.

The automaker has expanded its presence into Europe, Southeast Asia, Australia and the Middle East as part of its international business strategy.

Xpeng's potential entry into the Philippines follows the mutual agreement between Inchcape and Stellantis to end their local distribution partnership for Chrysler, Dodge, Jeep and Ram by the end of June 2027.

Inchcape stated that the decision formed part of its regular review of brand partnerships as it directs investments towards businesses aligned with its long-term growth objectives.

"Our priority is to ensure a smooth transition, and we will continue to work closely with Stellantis to support our customers, dealers and partners, while honouring our existing commitments," said Alex Hammett, Managing Director for South Asia and the Pacific at Inchcape.

Hammett also indicated that additional brands and products could be incorporated into Inchcape's local portfolio.

"Our focus is now on continuing to grow our existing portfolio and bringing new products to our customers in the Philippines," he said.

Inchcape Philippines currently manages the Mercedes-Benz, Jaguar Land Rover, Changan and Harley-Davidson brands. The company recently sold its Mazda C5 Pasig dealership back to Mazda Philippines, which is expected to assume operations in August. Should the arrangement proceed, Xpeng would become another Chinese electric vehicle brand to enter the Philippine automotive market.