Could the 14.98 million Xiaopeng G3i be the ceiling for 150,000 intelligent electric vehicles?

The mid-term facelift for XPeng G3i brings a radical improvement in appearance

As the first car model released by XPeng Motors in China, the G3 launched with some hasty compromises. Today, XPeng Motors still has a severe imbalance in sales. For example, in June, the total delivery volume of XPeng Motors was 6565 vehicles, of which P7 accounted for more than 70% with 4730 delivered, while the compact SUV G3, which is more favored by Chinese consumers, accounted for less than 30%. Therefore, updating the G3 through a mid-term facelift to increase its competitiveness and sales is becoming increasingly important for XPeng Motors.

The G3i is the mid-term facelift of the G3 launched three years ago. For carmakers, mid-term facelifts often require a certain level of updates to the appearance and interior, as well as optimizations and adjustments to configurations. One of the biggest highlights of the G3i is the radical improvement in appearance, adopting the XPeng Motors X Robot Face family design language and achieving a consistent style with the P7. It also addresses the previous critical feedback from many consumers on the appearance of the original G3.

The G3i provides various exterior color options, including sky blue-green with white top, dynamic red with cool black top, and light and pleasant blue with cool black top. The use of popular contrasting colors makes the G3i look more youthful and sporty. In addition, the floating roof design, hidden door handles, and 18-inch wheels create a distinctive appearance for the G3i compared to the G3.

However, compared to the appearance updates, the “i” in G3i represents a comprehensive improvement in the intelligent networking level. The new car is equipped with a standard full-scene voice-controlled and Xmart OS 2.0 in-car intelligent system, which is the biggest highlight of the G3i. This makes the G3i not only reach the same level as the P7 in terms of appearance but also in the field of vehicle networking, achieving a “voice control wherever you see on the screen” level of control.

# XPILOT 2.5 Autonomous Driving Assistance System is Another Selling Point of G3i Besides Connected Vehicle Technology

Due to cost considerations, G3i is not as well-equipped with XPILOT 3.5 which will soon be available on P5. However, XPILOT 2.5 is still capable of providing functions such as ACC, turn signal controlled lane change, lane centering, lane departure prevention, and ATC adaptive cruise control in a full-speed domain, thanks to its hardware combination of 5 high-definition cameras, 3 millimeter-wave radars, and 12 ultrasonic sensors. This is enough to meet the driving needs of ordinary drivers.

It is worth mentioning that XPILOT 2.5’s automatic parking function can automatically park in various scenarios, including wired frame / wireless frame / parallel / vertical / oblique parking, making the driving experience more convenient. However, compared to the previous generation G3, G3i has canceled the 360-degree panoramic image feature. For a compact SUV, considering that the selling price is still the main factor for consumers to buy a car, it is obvious that reducing the pressure of BOM material costs is necessary.

Is G3i Competing Well in the Sub-segment Market?

Compared with two traditional car companies’ compact SUVs and NETA U, which is also a new force in car making, Xpeng’s G3i is not superior in terms of interior space. The new Song PRO EV has a clear advantage in size, while Volkswagen ID.4X and NETA U have a huge advantage in wheelbase.

For compact SUVs, interior space is usually a pain point and an important consideration for people when purchasing pure electric compact SUVs. Since mid-term upgrades usually do not change the structure of the entire vehicle, we can only expect the next generation G3 to make significant improvements in interior space.When looking at the top-of-the-line models of four car models, the Volkswagen ID.4X has a significant advantage in the power system. After all, from Volkswagen’s perspective, as the first model to introduce the MEB platform in China, it needs to have the ability to compete with the Model 3.

However, in terms of price, the ID.4X and the Song Pro EV are also higher than the XPeng G3i. Considering the G3i’s level of intelligent network connection, especially its driving assistance level and cost-effectiveness, it would be a good choice for consumers who do not have great demand for in-car space.

XPeng automobile faces pressure as it fell on the first day of listing

The competition in China’s new energy vehicle market is increasingly fierce, and XPeng will not face a better market environment.

Looking back from the US stock market to Hong Kong’s XPeng automobile, the stock fell on the first day of listing, which indicates the pressure faced by this new force car manufacturer and the cruelty of the entire segmented market. The stock prices of XPeng, NIO, and other new car manufacturers that dominated the American stock market in 2020 have also experienced significant adjustments.

Currently, XPeng automobiles only have two models, G3i and P7. The introduction of the P5 in the fourth quarter and a mid-size SUV next year will complete its model matrix. However, the introduction of two new models also means a large amount of capital investment. Whether it is from the early research and development or later marketing and promotion, XPeng’s capital pressure is evident. This is also the reason why it is eager to return to Hong Kong from the US to raise enough funds.

Although XPeng’s gross profit margin has turned positive, and there are more and more consumers subscribing to XPILOT, the company as a whole has not yet achieved profitability. Therefore, finding a reliable financing channel is also a top priority.

The mission given to G3i by XPeng is to create the most intelligent and cost-effective compact SUV under 200,000 yuan. G3i’s overall competitiveness has indeed improved a lot compared to G3, and the increase in terminal sales volume is also worth looking forward to. However, G3i will face a challenge in the future not only from other compact SUVs in the same segmented market but also from entry-level models such as the Model 3, which will inevitably continue to depreciate in the future. Once the entry-level price of the Model 3 drops below 200,000 yuan, it will be the biggest challenge for XPeng G3i.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.