In a dispute with one of its battery suppliers, XPeng Motors won the case and was awarded compensation.
Recently, the People's Court of Tianhe District, Guangzhou City, Guangdong Province, completed the first-instance verdict in a dispute over the sale and purchase contract between Guangzhou XPeng Motors Technology and Shanghai DLG Power Battery.
The verdict shows that XPeng purchased the battery cells from DGL and paid RMB 2,581,880 for the goods from September 2017 to February 2018.
However, the battery cells supplied by DGL were found to have quality problems, and XPeng returned them according to the result of negotiation between the two parties and expected DGL to refund the corresponding purchase price and compensate for the damages.
XPeng demanded DGL to refund the purchase price of RMB 2,581,880, compensate the loss of RMB 7,137,420, and compensate the related interest loss.
The court held that XPeng had returned part of the batteries to DGL as agreed, but DGL had not returned the corresponding payment to XPeng so far, and its behavior had constituted a breach of contract.
The verdict was that DGL should refund RMB 930.518.4 to XPeng and pay the economic loss totaling RMB 1,926,950. The judgment rejected XPeng's other claims.
The judgment mentioned that the model involved was manufactured by Zhengzhou Haima Motor, and therefore should be its G3 SUV.