Tesla has triggered a race to the bottom in the Chinese auto market with its significant price cuts. One of the first local rivals to respond is XPeng, which has adjusted prices across most of its models.
Less than two weeks after Tesla’s new lower prices shook the industry, XPeng has reacted with its own price cuts. All its models were affected, except the flagship G9 SUV.
The largest cut was on the P7 sedan, which will see customers saving up to RMB 36,000 (about US$5,313). The entry price is now RMB 209,000 and can go all the way to RMB 249,900.
The G3i SUV sees a reduction of up to RMB 25,000 (US$3,690), translating to up to 13.23% of the original price.
The XPeng P5 sedan’s price was lowered by RMB 23,000 (US$3,394), the most affordable starting from RMB 156,900, as reported by CnEVPost.
XPeng last adjusted prices in November 2022. A spokesperson said the price cuts were normal as production costs dropped.
Meanwhile, XPeng is placating owners that barely missed the price cuts to avoid the backlash Tesla received. The former EV maker is offering first-time owners that bought XPeng cars within the last one year a vehicle warranty extension to 10 years or 200,000 and 4-year basic maintenance.
We suspect this is not the last we hear of price cuts in the Chinese auto market. BYD sales reps complained some pre-order holders canceled to cross to Tesla. It is safe to assume the former is working on its own response.
Tesla also slashed prices in the US, Canada, and Europe.
