Xpeng (NYSE: XPEV) almost became the one to fire the first shot at restarting the price war, if Tesla (NASDAQ: TSLA) acted a bit later.
Less than 2 hours after Tesla announced that it was offering insurance subsidy for the Model 3 in China, Xpeng unveiled its promotional policy, marking a near-simultaneous entry into the price war by two major electric vehicle (EV) makers.
Xpeng announced today on Weibo that it is offering a financing policy in China with zero down payment, as well as zero interest for up to five years, which will allow customers to save up to RMB 57,000 yuan ($7,830).
The company said this is the industry's only five-year, zero percent interest, zero percent down payment financing program, and is aim at making smart driving accessible to more people.
Xpeng offers a zero-down payment, five-year, zero interest financing program for the X9 MPV (multi-purpose vehicle), allowing monthly payments to be as low as RMB 5,830, with savings of up to RMB 57,000, according to one of its posters.
The company is offering a zero-down payment, three years zero interest financing plan for the G9 SUV (sport utility vehicle), allowing monthly payments to be as low as RMB 6,636, with savings of up to RMB 28,000, according the poster.
For the P7i sedan and G6 SUV, Xpeng also offers a zero percent down payment, zero percent interest financing program for three years, allowing customers to save up to RMB 20,000 and RMB 18,000 respectively.
Xpeng's financing package launched on Feb 5, 2025
Model | Financing plan | Monthly payment (RMB) | Save up to (RMB) |
---|---|---|---|
Xpeng X9 | 0 down payment + 0 interest for 5 years | 5,830 | 57,000 |
Xpeng G9 | 0 down payment + 0 interest for 3 years | 6,636 | 28,000 |
Xpeng P7i | 0 down payment + 0 interest for 3 years | 5,969 | 20,000 |
Xpeng G6 | 0 down payment + 0 interest for 3 years | 4,997 | 18,000 |
The deadline for this financing program is February 28, according to an Xpeng poster.
Xpeng's current models on sale include the P7+, Mona M03 -- two new sedan models that have only been on sale for a few months -- as well as the X9, G9, G6, P7i, and P5 sedan.
The latest financing package does not cover the P7+, Mona M03, but Xpeng announced earlier today that it has begun offering promotional packages for the Mona M03, including free charging for 888 kWh, free upgrades to the stereo valued at RMB 4,000, and RMB 3,000 in trade-in subsidy.
Existing Xpeng owners who purchase the Mona M03 will receive an additional 1,500 kWh of free charging per year for four years.
The Mona M03 is a new model officially launched by Xpeng on August 27 last year and is offered in three variants, which currently have a starting price of RMB 119,800, RMB 129,800 and RMB 155,800 respectively.
The sedan is the least expensive of Xpeng's models on sale and is about half the price of the Tesla Model 3 sedan.
The X9, which went on sale on January 1, 2024, is the flagship model under Xpeng's SEPA (Smart Electric Platform Architecture) 2.0 architecture.
The MPV currently starts at RMB 359,800, Xpeng's highest price to date.
China has just concluded its week-long New Year holiday and today is the first working day of the Year of the Snake.
Xpeng saw a relatively strong delivery performance last month, despite the Chinese auto market entering its traditional slow season.
Xpeng delivered 30,350 vehicles in January, up 267.88 percent from 8,250 in the same month last year, though down 17.29 percent from 36,695 in December, according to data it released on February 1.
The figure surpassed Li Auto's (NASDAQ: LI) 29,927 units and is the first time since September 2022 that Xpeng's monthly deliveries have exceeded those of this local counterpart whose sales come mainly from hybrids, according to data compiled by CnEVPost.
The Mona M03 delivered more than 15,000 units in January, the company said, without mentioning specific figures.
($1 = RMB 7.2822)
Tesla offers insurance subsidy for Model 3 in China, firing 1st shot in renewed price war