Xpeng has learned from its previous experience and is hoping to capitalize on early orders for the P7+ with a more streamlined choice of variants and faster deliveries.
Xpeng (NYSE: XPEV) has begun volume deliveries of the P7+ in China, following last week’s launch of the new electric sedan.
Nationwide deliveries of the Xpeng P7+ began on November 11, the Chinese electric vehicle (EV) maker announced today on Weibo.
Vehicles are arriving at Xpeng’s delivery centers around the country, the company said.
The company said yesterday that the P7+ has been arriving in stores in large quantities for pre-delivery preparations.
Xpeng launched the P7+ on November 7 at a starting price of RMB 186,800 ($26,000), which is RMB 23,000, or 11 percent, below the RMB 209,800 pre-sale price.
Specifically, Xpeng is offering two regular variants of the P7+ with starting prices of RMB 186,800 and RMB 198,800 respectively.
There was also a limited edition of the model that starts at RMB 218,800 with only 500 units available. The limited edition is currently sold out.
The more streamlined choice of variants and faster delivery speeds come from lessons learned from the past.
When Xpeng launched the G9 SUV (sport utility vehicle) in September 2022, it offered a large number of versions, which provided more choices for potential customers, but also brought a lot of confusion.
Additionally, experience over the past few years has shown that the peak sales of a new model are usually within a few months of its launch. If a car company can’t deliver quickly, it usually sees a lot of initial orders lost.
The P7+ appears to be Xpeng’s blockbuster model following the Mona M03, and the company announced on November 8 that the P7+ garnered 31,528 orders with non-refundable deposits in the first three hours of its official launch.
On November 8, Deutsche Bank analyst Wang Bin’s team raised their monthly sales estimate for the Xpeng P7+ to 9,000 units from 6,000, citing the model’s competitive pricing and greater length, height and wheelbase compared to its class rivals.
The team’s previous sales expectations were based on the P7+’s higher pre-sale price of RMB 209,800.
Given the successful debut of the P7+, the team expects Xpeng to achieve double-digit vehicle gross margins in the future, as the upcoming new product should benefit from the same 25 percent vehicle material cost savings strategy.
Deutsche Bank raises monthly sales estimate for Xpeng P7+ to 9,000 from 6,000
($1 = RMB 7.1843)
