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Chinese EV maker Xpeng joins Tesla, Seres in price cuts

SHANGHAI/BEIJING (Reuters) -Chinese automaker Xpeng (NYSE:XPEV) on Tuesday announced price cuts for some models in a notice on its official WeChat account, following similar moves...
Chinese EV maker Xpeng joins Tesla, Seres in price cuts © Reuters. People walk past an Xpeng booth during a media day for the Auto Shanghai show in Shanghai, China April 19, 2021. REUTERS/Aly Song/Files
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SHANGHAI/BEIJING (Reuters) -Chinese automaker Xpeng (NYSE:XPEV) on Tuesday announced price cuts for some models in a notice on its official WeChat account, following similar moves by Tesla (NASDAQ:TSLA) and Seres and fuelling expectations of a wider price war.

Xpeng lowered the starting prices for its best-selling pure electric P7 sedan to 209,900 yuan ($31,015), according to the notice, 12.5% lower than its previous level.

The Guangdong-based automaker also slashed prices for all versions of P5 sedan and G3i sports-utility vehicles by between 10% and 13%, according to Reuters calculations based on the prices.

Competition is intensifying in the electric vehicle (EV) sector in China amid forecasts for demand to falter in the first quarter. EV makers, though many of them still loss-making, are therefore under pressure to cut prices to sustain sales volumes.

"We hope to make intelligent vehicles more accessible to more people with more competitive prices," an Xpeng spokesperson told Reuters in a statement after the price cut.

Xpeng said it would offer car owners who purchased automobiles before the price cut extended maintenance services for free as compensation.

Tesla slashed prices of its Model 3 and Model Y cars by 6% to 13.5% in China earlier this month, while Seres also cut prices for its Aito electric cars co-developed with Huawei Technologies Co by 30,000 yuan last Friday.

Xpeng is also counting on a revamped version of the three-year-old P7 sedan to be launched in the first quarter to boost sales. The EV maker sold 59,066 P7 cars in 2022, 2.5% fewer than a year earlier.

($1 = 6.7678 yuan)

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    EUR/USD 1.0877 ↑ Buy  
    GBP/USD 1.2381 ↑ Buy  
    USD/JPY 129.82 ↑ Sell  
    AUD/USD 0.7108 ↑ Buy  
    USD/CAD 1.3333 ↑ Sell  
    EUR/JPY 141.18 ↑ Sell  
    EUR/CHF 1.0032 Neutral  
    Gold 1,924.55 ↑ Sell  
    Silver 23.802 ↑ Sell  
    Copper 4.2598 ↑ Buy  
    Crude Oil WTI 81.31 ↑ Sell  
    Brent Oil 87.78 ↑ Sell  
    Natural Gas 2.816 ↑ Sell  
    US Coffee C 167.20 Neutral  
    Euro Stoxx 50 4,170.25 ↑ Sell  
    S&P 500 4,060.43 ↑ Buy  
    DAX 15,123.85 ↑ Sell  
    FTSE 100 7,769.31 ↑ Buy  
    Hang Seng 22,642.50 ↑ Sell  
    Small Cap 2000 1,903.06 ↑ Buy  
    IBEX 35 9,060.48 ↑ Buy  
    BASF 52.620 ↑ Sell  
    Bayer 56.04 ↑ Buy  
    Allianz 221.60 ↑ Buy  
    Adidas 147.88 ↑ Sell  
    Lufthansa 9.715 ↑ Buy  
    Siemens AG 144.06 Sell  
    Deutsche Bank AG 12.235 ↑ Buy  
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