Chinese Tesla challenger Xpeng prices its P5 sedan from US$24,700 after subsidies as battle for EV buyers intensifies
- Six versions of the new sedan, priced at 160,000 to 230,000 yuan, are expected to be delivered from October
- Electric vehicles will be fitted with lidar units as Xpeng fuels race to make self-driving technology a standard feature in new generation of cars
Two of the six versions will be fitted with lidar units, a critical technology in autonomous driving with delivery expected to start from October, revving up sales in the world’s biggest market for electric vehicles (EVs).
“The price targets a wide range of customers and it appears to be attractive to those middle-income earners looking to own a smart EV,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “The customer base for EVs priced below 200,000 yuan is huge in China.”
Sales of new-energy vehicles in the mainland amounted to 1.2 million units in 2020, or 6.3 per cent of passenger vehicles sold in 2020, Xpeng said in its June prospectus, citing IHS Markit. China contributed 45.3 per cent of global EV sales, or 3.7 times the US market, and is seen growing 34 per cent every year to 4.2 million units in 2025. UBS
Given the market potential, “every major player in the Chinese EV market is looking to increase their share by offering attractive prices to customers,” Tian added.