Tesla challenger Xpeng sparks all-out price war in China’s cutthroat premium electric car sector with steep discounts

Name: Chinese XPeng electric car can drive and park by itself
Uploaded: 2023-01-17T10:30:14.000Z
Duration: 2 min 18 s
Description: Chinese XPeng electric car can drive and park by itself

The Chinese carmaker slashed the prices of its P5 and P7 saloons, and its G3i SUV, by 10 to 13 per cent, having cut production costs

‘A price war in the premium EV segment looks inevitable now that Tesla and Xpeng have massively slashed prices,’ marketing expert says

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Xpeng cars on display at the Chengdu Motor Show 2022 in southwest China’s Sichuan province. Photo: Xinhua

Daniel Renin Shanghai

Published: 6:30pm, 17 Jan 2023Updated: 6:43pm, 17 Jan 2023

Chinese electric car maker Xpeng has slashed the prices of some of its models in a bid to lure mainland motorists amid an increasingly cutthroat battle with the likes of Tesla in the premium EV market.

The move by the Guangzhou-based carmaker to lower prices by as much as 13 per cent comes less than two weeks after rival Tesla made its Model 3 and Model Y vehicles more affordable.

Analysts said an all-out “price war” in the highly competitive segment is on the cards.

Xpeng said on Tuesday afternoon that its bestselling P7 model would now start at 209,900 yuan (US$30,976), a discount of 12.5 per cent from the previous price.

It reduced the prices of its P5 and P7 saloons as well as its G3i sport-utility vehicles (SUVs), by 10 to 13 per cent, saying the lower prices were made possible by its efforts to slash production costs.

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Chinese XPeng electric car can drive and park by itself

Xpeng kept the price of the G9, a luxury SUV that hit the market in October, unchanged.