Orders with deposits paid by 24:00 on December 31 will continue to receive the same purchase subsidies as in 2022, Xpeng said.
(Image credit: CnEVPost)
Xpeng Motors announced its pricing policy near the end of the year, with China's purchase subsidies for new energy vehicles (NEVs) expiring in one month.
Orders with deposits paid by 24:00 on December 31 will continue to receive the same purchase subsidies as in 2022, Xpeng said in a statement posted on Weibo today.
Currently, China's support policies for NEVs include subsidies for vehicle purchases and exemptions from purchase taxes.
Both policies were set to expire at the end of this year, but the latter has been extended until the end of next year, while the former has not been extended.
Consumers who are able to receive the purchase subsidies for NEVs will need to complete the acquisition of license plates during the year.
When purchasing a vehicle, consumers pay for it at the post-subsidy price, and car companies then receive the subsidy amount from the government.
For new car makers, including Xpeng, there is usually a time lag between placing an order and delivery. If Xpeng does not clarify its policy at the end of the year, consumers will likely not consider its models for fear of not receiving subsidies.
The current purchase subsidy for Xpeng models ranges from RMB 10,080 ($1,410) to RMB 13,860.
For orders placed before the end of the year but not delivered until next year, Xpeng will cover the subsidy amount, according to the statement from the company today.
The announcement by Xpeng comes on the heels of similar actions by its local peers including Nio and Shenlan, the electric vehicle brand of Changan Automobile.
It's been a tough year for Xpeng, especially since its deliveries have plummeted since the second half of the year.
Earlier this month, rumors surfaced that Xpeng had slashed prices on its models, though this was denied by the company.
Xpeng's offline stores offered some benefits to consumers as part of its Singles Day promotion on November 11, local media outlet Jiemian said in a November 15 report, citing sources at the company.
Xpeng's latest policy is to switch that promotion to offering consumers a final payment reduction, with no change in the strength of the offer, the source said.
Xpeng sharply reduced the number of versions of its older models on November 19, seemingly hoping to boost declining sales by making it less difficult for consumers to choose.
Xpeng delivered 5,101 vehicles in October, down 39.76 percent from 8,468 units in September and 49.68 percent from 10,138 units a year earlier, data released earlier this month showed.
The company continued its weak performance in November, registering 1,115, 1,107, 1,173 and 1,466 insurance units in the first four weeks, for a cumulative total of 4,861 units.
Xpeng will report unaudited third-quarter earnings later today, and in their preview, Deutsche Bank analyst Edison Yu's team said the key to Xpeng regaining relevance is winning back demand, which could take several quarters.
