Chinese EV Maker Xpeng To Recall 13,399 G3 SUVs, Cites Potential Inverter Issue

Xpeng Inc – ADR XPEV announced a voluntary recall of some of its G3 SUVs.

What Happened: The Chinese EV maker, which caters to the low- and mid-end market, is recalling 13,399 G3 model vehicles manufactured between March 29, 2019 and Sept. 27, 2020, a filing by China's State Administration for Market Regulation showed.

The recalled vehicles are at risk of short-circuiting of high-voltage DC, which could lead to high-voltage electricity supply to the inverter. This, according to Xpeng, can result in non-starting of the car, or losing power, while on the move.

Related Link: XPeng Teases New Sedan With Lidar Technology

Why It's Important: The G3 is one of the two EV models Xpeng is marketing currently. Chinese EV makers, including Xpeng, have emerged stronger from the COVID-19-induced softness in early 2020.

Xpeng reported earlier this month record deliveries of 5,700 EVs in December, comprising 3,691 P7 electric sedans and 2,009 G3s. The company attributed the strength to increasing brand awareness, expanded sales, marketing and supercharging service initiatives across China.

The negative headlines over the recall could hurt sentiment toward the company and its EVs.

Peer Li Auto Inc. LI announced in early November a recall of 10,469 Li ONEs, its lone EV model, due to issues with the control arm ball joint of the front suspension. In mid-2019, Nio Inc - ADR NIO was forced to recall 5,000 of its ES8 SUVs, citing reports of battery fires.

In premarket trading, Xpeng shares were slipping 2.51% to $50.16.