Xpeng bows to the escalating price war in China’s electric car market, slashing sticker prices by up to 13% after Tesla’s unexpected price cut earlier in the year.
According to a post on Xpeng’s official Weibo page, the starting price of the base model of Xpeng’s G3i SUV has dropped from 168,900 yuan to 148,900 yuan ($22,000).
The price of the P7 sedan was lowered to 249,900 yuan, but the price of the newly launched G9 model remained unchanged.
China is the world’s largest EV market and an increasingly competitive battlefield for domestic and foreign automakers.
After cutting prices on its popular Chinese-made Model Y and Model 3 in October, Tesla cut prices again on January 6.
Mercedes-Benz slashed the prices of its two EVs by up to $33,000 in November, while Huawei-backed Aito slashed prices by up to 31,000 yuan this week.
Xpeng’s share price plummeted following Tesla’s recent price cut, and Citigroup analyst Jeff Chung said automakers would “suffer the most” from the impact on sales of the P7 and G7 models.
Guangzhou-based Xpeng unveiled its G9 SUV in September, hoping to boost sales affected by COVID-19 lockdowns and restrictions in China.
“We will further improve our supply chain management, cost control, production efficiency and customer service,” Xpeng said on Tuesday, describing the price cut as a “normal adjustment.”
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