A recent price cut on the China-made Tesla Model 3 has sparked a lot of discontent among new car owners. Seemingly in response, the company's local rival, Xpeng Motors, has taken the opportunity to introduce a price protection scheme for owners.
Xpeng Motors recently said that from October 1, 2020, to February 11, 2021, Xpeng promises to provide benefits to all customers who previously purchased an Xpeng P7 if they are affected by changes in market conditions that result in a reduction in the combined subsidized national suggested retail price of existing Xpeng P7 models.
Among other things, customers who have not been delivered will be compensated for the difference in price, and those who have been delivered will be compensated with the equivalent value of Xpeng Mall points.
Tesla recently lowered the price of the China-made Model 3 standard range upgrade to RMB 249,900 after subsidies, which has not only put tremendous pressure on domestic independent brand new energy vehicle manufacturers but also caused a lot of dissatisfaction among owners of older vehicles.
Some Model 3 owners claim that they were rushed by salespeople to collect their vehicles a week before the price cut, causing them to miss out on the RMB 20,000 price cut they would have been able to enjoy.
Even though Tesla is offering some compensation, including 3 years of free overcharging for those who meet the criteria, it's still hard to quell the anger of many new car owners.
The new Chinese carmaker is more concerned about the feelings of the old owners than Tesla's sudden price cut and its "tough" approach to car owners.
Some internet users are of the opinion that, like Tesla, Xpeng's manufacturing and sales costs have been reduced due to the cost advantage of mass production as deliveries have risen.
In order to remain competitive in the market, Xpeng's move may indicate that price cuts will follow.
Meanwhile, other Internet users believe that the recent Tesla price cuts have caused a lot of concern in the automotive community.
Xpeng's timely release of this premium policy seems to be a marketing effort to take advantage of Tesla's criticism, as it doesn't really need a price cut to be effective after all.
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