Author: Erchai

Yesterday, XPeng Motors officially announced that it will adjust the prices of its P7 and P5 models, as well as owner benefits and advanced driving assistance configurations. This adjustment covers various aspects of XPeng’s two best-selling models, and includes several changes. For example, the smart driving assistance software, which previously cost 20,000 yuan to purchase, will now be included for free. These changes will also have a positive impact on other electric vehicle companies. Let’s summarize the changes point by point.

Four New Models Added to XPeng P7

Starting May 9th, XPeng P7 will add four new models: 480G+/480E+/586G/625E. The prices for these cars range from 239,900 to 285,900 yuan, and their ranges are 480km, 586km, and 625km (NEDC), respectively. Some models, such as 586G, have lower prices at the same range. In addition, XPeng has upgraded some wheels from 18 inches to 19 inches. However, it seems that there are now too many models of XPeng P7 (more than 20), making it difficult for many old car owners to choose from and overwhelming for new users.

One New Model Added to XPeng P5

XPeng P5 has added a new 460P model, which costs 209,900 yuan and has a range of 460km. The entry-level model of P5 costs 177,900 yuan. The new 460km range model is the top model of the 460km range models.

Intelligent Driving Assistance Software Offered for “Free”

Starting May 9th, 2022, the intelligent driving assistance software and upgrade services that were previously priced at 20,000 yuan will be included as standard on models with intelligent driving assistance hardware. This change applies to P5’s E/E+/P models and P7’s E/E+ models.

For older car owners who have spent 20,000 yuan to purchase the software, this change might seem unfair at first. However, since XPeng P7 has already raised its prices once, this change can be seen as a way to offset that price increase. It also provides some comfort to new car owners who have paid higher prices. For older car owners who have purchased software for 20,000 yuan, the impact of this change will not be too significant.### P5 Models Price Increased by RMB 7,000

XPeng Motors announced that its P5 600P and 550P models are now raised by RMB 7,000, with prices post-hike of RMB 249,900 and RMB 225,900, respectively. As we mentioned previously, although prices have increased, the intelligent auxiliary driving system software, which previously cost RMB 20,000, is now offered for free.

XPeng’s Self-developed Auxiliary Driving Features to be Launched

According to the official announcement from XPeng Motors, XPeng P7 E/E+ series models will adopt self-developed solutions for some of its auxiliary driving features, which will be opened to users through OTA starting from May 9, 2022. The expected release date for the update is October 2022, aiming to promote advanced intelligent auxiliary driving systems to more users.

Free Lifetime Charging Service Will be Discontinued

Unfortunately, for new car owners, this news is a bit sorrowful. The official announcement mentioned that since May 9, 2022, the XPeng brand no longer provides the rights to free lifetime charging services or free home charging piles for all its models (excluding those who placed an order prior to May 9th). This means that from now on, buying a XPeng car will no longer include the privilege of free charging. After all, given the size of the “pie” that XPeng has laid out, it is difficult to pay for such a service. Therefore, XPeng chooses to cancel the benefit of free lifetime charging for some new customers, even if it may disappoint them. XPeng is ultimately a profitable enterprise, not a welfare enterprise. This decision is understandable.

During the early days of the brand’s establishment, XPeng Motors chose to offer the benefit of “free lifetime charging” to show appreciation to the first group of customers who chose XPeng electric cars. As the product line becomes stronger and the user base grows, it is necessary to choose the most cost-effective approach to manage customer relations.

XPeng Motors currently has three mass-produced models, including the G3 series, a home-use pure electric SUV priced around RMB 150,000, the P5, a compact car priced around RMB 200,000, and the P7, a mid-size car priced around RMB 300,000.

According to XPeng’s pricing chart, the price of their new mid-size SUV, XPeng G9, should be around 350,000 yuan. This price is already high for XPeng. Therefore, as the owner of XPeng G9, who owns a car at XPeng’s price ceiling, what benefits can they expect to receive is worth looking forward to.

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.