This is largely due to the fact that XPeng's car purchase benefits for consumers will begin to be reduced on December 13.
(Image credit: CnEVPost)
XPeng Motors saw a huge spike in orders on Sunday, as the attractive benefits it offers consumers are about to shrink.
The electric vehicle maker received more than 3,000 orders in a single day on Sunday, December 12, a new breakthrough for the brand, local media outlet cnmo.com said today, citing XPeng salespeople.
(Image credit: cnmo.com)
December 12, known as "Double 12" in China, is another shopping day after the "Double 11" shopping spree on November 11, albeit with slightly less momentum.
The excellent product competitiveness and good reputation are the basis for XPeng to get so many orders, but this also has to be viewed rationally, the report noted, adding that this is directly related to the benefits it offers to consumers will be adjusted.
XPeng first introduced its purchase benefit package when the P7 was launched in April 2020, when owners who paid a deposit could receive RMB16,000 in benefits, which they could use to pay for optional features or be put into an account to be used as points.
Since then, all of XPeng's models have begun offering similar packages to consumers.
With the purchase subsidies offered by China for new energy vehicles set to shrink next year, XPeng was the latest to take action after Tesla and NIO.
According to several local media reports last week, both the benefits package and purchase loan benefits for new customers purchasing XPeng vehicles will be reduced starting December 13.
XPeng's benefits package for P7 buyers will be reduced by RMB 5,000 - 10,000, P5 by RMB 4,000, and G3i by RMB 5,000, and most models will no longer offer 0 or low-interest loan options.
China's Ministry of Finance released plans on April 23, 2020 for the subsidies offered by the country for new energy vehicles to be reduced each year, calling for the amount of subsidies to be reduced by 10 percent, 20 percent and 30 percent each year from 2020-2022, respectively, from the previous year.
The subsidies available to car buyers are based on when new cars get their license plates, which means that the amount of state subsidies available to consumers who get deliveries next year will be 30 percent less than in 2021.
The plan also mentions that from 2020, the pre-subsidized selling price of new energy passenger vehicles must be below RMB 300,000 (including 300,000 yuan) to be eligible for the subsidies.
On November 24, Tesla raised the price of the entry-level Model 3 and Model Y by RMB 4,752 in China, citing next year's retreat from China's new energy vehicle subsidies.
On December 1, NIO announced its subsidy program for consumers who purchased their vehicles this month, allowing owners who placed orders this year but will not receive delivery until early next year to continue to receive the current subsidy amount.