A price war is emerging in the electric car sector. After Tesla reduced its prices in China and also in Germany, the first carmaker to follow suit is XPeng, which is also lowering its prices, at least in China.
XPeng reduces prices in response to Tesla
After Tesla reduced its prices for the Model 3 and Model Y in China by up to the equivalent of 6,500 euros at the beginning of 2023 and has also been offering its electric cars at lower prices in this country since January 2023, automaker XPeng is following suit, at least in China.
As reported by Electrek magazine, XPeng is reducing the prices of its two sedans, the P5 and P7, as well as the G31 e-SUV. However, the Xpeng G9, which was introduced in August 2022 and features particularly fast charging speeds, is not affected by the price reduction.
The XPeng P7 in particular will be significantly cheaper. The price is reduced by a whole 13 percent to 209,900 yuan, which corresponds to just under 28,700 euros. The price of the other models is also set to be significantly lower in the domestic market.
“The price adjustment is part of our approach to make smart electric cars accessible to more customers, a mission we have strived for from the beginning,” a company spokesperson told Electrek.
As a result, a real price war is developing in the electric car segment, initially mainly in China. Even existing customers have XPeng in mind and offer all who have already bought their car before the price reduction, at least free extended maintenance.
It will be exciting to see what effects the price reduction of XPeng, but possibly also of other manufacturers in the future, will have on the European market. After Tesla has adjusted its prices, other suppliers may be forced to act here as well.