So as a result, there is a mix of methods and ways for us to reduce cost in terms of our powertrain, overall whole vehicle platform, engineering, architecture, scale and also different configuration as well. So overall in the coming period, in the second half of the year, first half of next year and also the second half of next year, we have set of different developmental stages goals in terms of our cost reduction and the effects can be expected. Now in regards to the deliveries of G9, definitely in the price range of RMB300,000 among all the BEV rivals, there has been a lot of challenges in pushing itself. However, in the near future, we do have several moves in place to boost sales deliveries. The first one is that we’re ramping up several configurations and the second one is by implementing the XNGP functions on G9 as well as on P7i, which we believe will greatly enhance the attractiveness of G9 as a product.
In addition to that, we are now gathering a lot of positive feedback from our customers who have received their G9 in terms of the product quality and overall performance. In addition to that, we believe that the launches of P7i as well as G6 will boost foot traffic in our stores as well as a encourage interest in G9 as well as part of the product line. In addition to that, we are now already seeing reinvigorated sales or deliveries in March compared to the months before, which was February in the market. And so we are still very confident that we can — we are on the right trajectory to meet our delivery target for G9 for the year.
Operator: The next question comes from Nick Lai of JPMorgan.
Nick Lai:
He Xiaopeng: I think what you mentioned in your questions, might be viable 15 years ago, which was that you can basically sell anything as long as they are cheap enough. However, it might not work today. We still believe that product quality speaks volume. So for this year in terms of our overall marketing and pricing strategy, we have set up different aggressive goals for, for example, the second half of the first quarter as well as for the upcoming several quarters of the year. So we definitely expect a lot of reinvigorated deliveries or sales outcome for the rest of the year.
Nick Lai:
He Xiaopeng: Now in regards to battery supply. First of all, in January last year, we saw this pricing inflation happen in the industry, which really encouraged the development of hybrid vehicles in the market, but rather much — but hurt a lot of development in the EV sector. However, this year, we are happy to see that the pricing of batteries have come down. And this newly launched price war in the industry, led by a lot of battery makers, especially the leaders, it’s definitely a very good sign or very beneficial for the development of BEV and can help us to improve our pricing competitiveness as well. Now so far, based on our conversation with our battery suppliers, we are confident that the price reduction — the degree of the price reduction by XPeng supplied by our supplier partners will be more aggressive than the industry average.
And that’s just from the outside. Looking internally, we also have discovered different ways to optimize our cost structure to reduce our costs in terms of the powertrain, batteries as well as parts by for example, integration as well — integrating some of the parts as well as replacing traditional NCM or NCA batteries with LFP batteries, also by extending the usage or the driving range that it can support per battery by about 10% to 20%. All of these ways can help us to further drive down our battery cost and you can actually see the effectiveness or outcome in the coming 12 months.
Operator: The next question comes from Ming Lee of Bank of America.
