China EVs: Xpeng cuts price of bestselling G6 SUV to maintain high sales volume amid intensifying competition
- Guangzhou-based company says the starting price of the G6 will be lowered by 10,000 yuan (US$1,400), and the discount will be effective until the end of this month
- Discounts ‘the most effective way of attracting customers’, industry insider says
The Guangzhou-based company said on Monday that the starting price of the G6 will be lowered by 10,000 yuan (US$1,400) to 199,900 yuan, and the discount will be effective until the end of this month.
“Top EV makers have felt the pinch from an economic slowdown,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “A reduction in price is seen as the most effective way of attracting customers.”
China’s top EV makers including Xpeng and BYD are facing new competitors, such as smartphone vendor Xiaomi and search-engine giant Baidu, which are luring wealthy motorists away from the established players with smart EVs. The major EV makers are under pressure to stem losses amid escalating competition in the world’s largest EV market. Crowded with 200 players, concerns are mounting over severe overcapacity.
Xpeng gets Volkswagen’s US$700 million investment to make EVs
Xpeng began delivering the G6 in July before the SUV hugely bolstered the carmaker’s sales volume between August and November. Brian Gu, the carmaker’s president, told a media briefing in July that the company expected to deliver at least 10,000 G6 vehicles a month, and planned to increase production of the new model.
The G6 has limited autonomous driving capability and can navigate the streets of China’s top cities such as Beijing and Shanghai using Xpeng’s Navigation Guided Pilot (X NGP) software, which is similar to Tesla’s Full Self-Driving (FSD) system. The FSD has not been approved by Chinese authorities and is not available on Tesla vehicles sold in the country.
Li Auto, Xpeng post record monthly sales in November driven by China’s love for EVs
China’s EV makers are on course to meeting an ambitious sales target, buoyed by mainland drivers’ rising penchant for battery-powered cars. Deliveries of EVs hit a record 940,000 units in November, up from 883,000 units set in October, according to data by the China Passenger Car Association (CPCA).
That translates to a 35 per cent year-on-year increase in wholesale deliveries to 7.74 million units through the first 11 months of this year.
The CPCA forecast that a total of 8.5 million pure electric and plug-in hybrid cars would be delivered to dealers between January and December, a 31 per cent increase over 2022. Two out of every five cars sold on the mainland currently are powered by electricity.