In an attempt to drive up sales, Xpeng Inc. XPEV has announced a limited-time price reduction for its G6 SUV, effective from Dec.18. This move follows a similar price cut for the P7i sedan earlier in the month.
What Happened: Xpeng communicated through its social media channels that customers buying the G6 SUV within December would receive a discount of RMB 10,000 ($1,400), reported CnEVPost on Sunday. An alternative offer is a 24-term zero-interest loan for clients who choose not to take the discount. The offer would be available from Dec. 18 onwards.
The promotional offer brings down the G6’s starting price to RMB 199,900 ($28043.55). The G6 model, which was officially unveiled in China on June 29, has witnessed robust sales, although growth has plateaued in the last two months.
See Also: Lucid’s Saudi Success: 800 Electric Vehicles Roll Off Production Line
In November, the G6 made up 43.66% of Xpeng’s monthly deliveries of 20,041 units. Amid rising competition in China’s electric vehicle (EV) sector, Xpeng began offering discounts on its vehicles. The company previously offered discounts of up to RMB 26,000 ($3647.49) on all P7i versions from Dec. 8 to Dec. 17. It remains to be seen if the P7i offer has been extended.
Why It Matters: This decision by Xpeng comes on the heels of the Hong Kong stock market downturn on Dec. 18, largely attributed to concerns over China’s economic future. Xpeng was particularly affected following Alibaba’s announcement to divest a significant portion of its shares in the company.
Despite the market woes, Xpeng achieved a 25% year-on-year sales growth in the third quarter of FY23. In November, the company hit a new monthly record with over 20,000 vehicle deliveries, marking ten months of consistent growth.
The recent price cut is thus seen as a strategic move to maintain sales momentum and stay competitive in the ever-intensifying Chinese EV market.
Read Next: Elon Musk Responds After Tesla User Calls Abrupt Strike On Crossing FSD Speed Limit ‘A Bit Crazy’
Image by Robert Way via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
