The move is a normal price adjustment for XPeng as its vehicle production costs have fallen, a spokesperson told CnEVPost.
XPeng (NYSE: XPEV) cut prices on most of its models, 10 days after Tesla's steep price cuts in China sent shockwaves through the industry.
In a post on its WeChat account today, XPeng announced updated pricing for all models except the flagship SUV G9, effective at 14:00 today.
CnEVPost's calculations show that XPeng's price cuts range from RMB 20,000 to 36,000 ($5,320), with the flagship sedan P7 receiving the largest price cut.
The XPeng G3i SUV is now available in three versions with the latest prices of RMB 148,900, 163,900 and 176,900, a reduction of RMB 20,000, 25,000 and 25,000, or 11.84 percent, 13.23 percent and 12.38 percent, respectively, from the previous prices.
The previously available XPeng G3i 520G becomes no longer available.
All available versions of the XPeng P5 sedan have been reduced in price by RMB 23,000, with the latest price range being RMB 156,900 to RMB 202,900.
Five versions of the XPeng P7 are no longer available, reducing the number of versions on sale to four. Three versions of the sedan have been reduced in prices by RMB 30,000, and another version has been reduced by RMB 36,000.
The latest price range for the XPeng P7 is RMB 209,900 to RMB 249,900.
This is the largest adjustment XPeng has made to its product sales system since the significant reduction in the number of available model versions on November 19, 2022.
The move is a normal price adjustment for XPeng, as its vehicle production costs have dropped, a spokesperson told CnEVPost.
This is also to make XPeng's smart car products more accessible so that more consumers can enjoy the changes that intelligence and technology can bring to a better life and travel, the spokesperson said, adding that the company wants to let more people experience a different kind of smart car as early as possible through more competitive prices.
"Not only that, next, we will also do better in supply chain management, cost control, production efficiency and owner service so that more people can enjoy the changes brought by technology," the spokesperson said.
To avoid triggering dissatisfaction among existing owners, XPeng is offering first-time owners who purchase G3i, P5 and P7 within one year rights including vehicle warranty extension to 10 years or 200,000 kilometers, and a 4-year basic maintenance gift.
Previously, on January 6, Tesla significantly lowered the prices of all China-made models in an attempt to boost demand for its electric vehicle market in China.
Tesla has a factory in Shanghai that makes the Model 3 and Model Y. The company currently offers two versions of the Model 3 in China, as well as three versions of the Model Y.
The entry-level, rear-wheel drive Model 3 has an updated starting price of RMB 229,900, down RMB 36,000 from the previous RMB 265,900.
This is the lowest starting price ever for a Model 3 in China, even below the January 2021 starting price of RMB 249,900.
Local media outlet The Paper quoted Zhang Xiang, a researcher at the Jiangxi New Energy Technology Institute, as saying in a January 6 report that other car companies will follow Tesla's move, especially for vehicles in the RMB 200,000-300,000 price range.
On January 13, Huawei-backed AITO announced price cuts on its two models, the M5 and M7, becoming the first local car brand to follow Tesla's move.