XPeng is providing significant discounts on its flagship sedan P7 and plans to launch the EV’s facelift in the Chinese market shortly.
After visiting several XPeng experience stores, local media outlet Cailian reported that the electric vehicle maker is discounting the P7 to clear inventory.
An XPeng salesperson said that if consumers buy the P7 625E now, they can get an RMB 10,000 cash discount and an RMB 7,000 insurance subsidy.
XPeng to offer an extra RMB 18,000 for trade-ins
XPeng stores will add RMB 18,000 to local government subsidies for trade-ins.
“That works out to RMB 35,000 for our stores alone, and the top-trim model can be bought for just slightly more than RMB 200,000.”
XPeng salesperson
The P7, with a range of 480 kilometers, is available at the other two XPeng stores with an RMB 10,000 cash discount and an RMB 18,000 trade-in subsidy.
The report compared XPeng’s move to NIO in early February to clear the inventory of older models.
The report noted, citing an XPeng source, that the P7i (new XPeng P7) will be released next week with pricing.
XPeng to release unaudited Q4 and fiscal year results
On March 1, NIO revealed disappointing fourth-quarter earnings, with gross margin falling to 3.9 percent from 13.3 percent and vehicle margin falling to 6.8 percent from 16.4 percent.
NIO said inventory provisioning, accelerated depreciation of production facilities, and loss of purchase commitments for the current generation ES8, ES6, and EC6 reduced vehicle margin by 6.7 percentage points in the fourth quarter.
XPeng will release its unaudited fourth-quarter and fiscal year 2022 results on Friday, March 17, before US markets open.
On January 17, XPeng dropped the prices of all models, excluding the G9 SUV, by RMB 30,000 or RMB 36,000, including three P7 models.
In February, the company delivered 6,010 vehicles, up 15.18 percent from 5,218 in January but down 3.45 percent from 6,225 last year.
