Jing Chang: [Foreign Language]
Operator: And the last question is coming from Nick Lai with JPMorgan. Please go ahead.
Nick Lai: [Foreign Language] [indiscernible] interested in my question very briefly. I recall in the second quarter results call, management indicated that the 4Q vehicle margin will likely turn to positive territory. Is our guidance is still so at the moment and at the same time we are launching the new A segment sedan under MONA brand with pricing point of about RMB150,000. At the same time, the new product will be equipped with a high end ADAS product. How do we reconcile the capacity competition in the low end segment and also the sector [indiscernible] with much more advanced ADAS content? Thank you.
James Wu: Hey, thanks, Nick. This is James. So I’ll answer your questions one by one. First of all, to reconfirm, we do believe our fourth quarter vehicle margin will turn positive to confirm your question. And this is bolstered by better mix of products in Q4 compared to Q3. And, as I mentioned earlier, we did see some level of battery cost reduction that came through towards the end of Q3. So for Q4, we’ll see a full quarter of battery cost reduction coming through, empowering the lithium prices stable over time. Going into 2024, we do expect our gross margin to be meaningfully improved versus 2023 on a full year basis. And this is also bolstered by our continued cost reduction to achieve our 25% or even more cost reduction targets, as Xiaopeng mentioned earlier.
We will have better product mix next year as we launch, for example, G9, which will be, amongst the highest — X9, I’m sorry. X9, the highest gross margin product at this point in our portfolio. And obviously, the new products coming from our SEPA 2.0 platform, next year we’ll be — we’ll have better margin as well. And lastly, to your question on MONA. You’re correct, it is targeting A segment. But we do see that MONA has a very good cost control and planning process, very competitive from a cost perspective, first of all. And second of all, MONA will help us achieve great scale, which will benefit to the entire company from a scale perspective as we’ve seen our cost allocation and therefore improve our margin. And lastly, we do expect more controlled associated sales expense related to the MONA sales because of the scale.
So it should not be a drag from a bottom line perspective, in terms of profitability. Thank you.
Nick Lai: Okay. Thanks.
Operator: Was there a follow-up question?
Nick Lai: No, that’s clear. Thank you. It’s clear.
Operator: Thank you. As there are no further questions now, I’d like turn the call back over to the company for closing remarks.
Alex Xie: Thank you once again for joining us today. If you have further questions, please feel free to contact XPeng’s investor relations through the contact information provided on our website or the Piacente Financial Communications.
Operator: This concludes today’s conference call. You may now disconnect your line. Thank you.
