Home » The Updated Price of XPeng’s EV Under New Subsidies Policy of 2022

The Updated Price of XPeng’s EV Under New Subsidies Policy of 2022

by SEP Editor
3 mins read
(Photo Credit: XPeng)

China, Jan. 11 – XPeng Inc. (NYSE: XPEV, HKEX: 9868. HK)) recently released the post-subsidies price of different models, drawing attention to how state subsidy could affect the EV market. 

On December 31, 2021, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued a new policy on the financial subsidy policy for the promotion and application of EV in 2022.

The policy states that the subsidy standard for EV in 2022 will be slashed by 30% on the basis of 2021. This has a significant impact on EV manufacturers in China, and many of which adjusted prices accordingly. 

Below is the list of price for XPeng’s EV with different models: 

P7 480

  • 480G: 224,200 RMB
  • 480N: 234,200 RMB
  • 480N+: 237,200 RMB
  • 480E: 244,200 RMB

P7 586

  • 586N: 255,800 RMB
  • 586E: 265,800 RMB

P7 706/670

  • 706G: 260,800 RMB
  • 670G: 262,800 RMB
  • 670N: 272,300 RMB
  • 670N+: 275,800 RMB
  • 670E: 282,300 RMB
  • 670E+: 285,800 RMB
  • 670E Pengyi: 366,900 RMB
  • 670E+ Pengyi: 367,900 RMB

P7 562

  • 562N: 339,900 RMB
  • 562E: 349,900 RMB
  • 562E Pengyi: 409,900 RMB

P5 

  • 460G: 162,700 RMB
  • 460E: 182,700 RMB
  • 550G: 178,300 RMB
  • 550E: 198,300 RMB
  • 550P: 205,300 RMB
  • 600P: 229,300 RMB

G3i 

  • 460G: 154,600 RMB
  • 460N: 178,200 RMB
  • 520G: 171,200 RMB
  • 520G+: 173,200 RMB
  • 520N: 191,200 RMB
  • 520N+: 193,200 RMB
(Photo Credit: China Daily)

The subsidy for new clean energy was officially introduced in 2015. According to public data, the total amount of subsidies for new clean energy of OEMs was 32.946 billion RMB from 2016 to 2020. Under such a high subsidy temptation, some of the companies in the industry are in the crisis of cheating.

The introduction of new clean energy subsidies were originally planned to promote the development of the EV industry with good vision. However, within some companies taking advantage of the subsidies without actually improving their products and service, its necessity needs reconsideration. Thus, as the penetration rate of EV rises, the subsidies are reduced according to plan. 

With the shrinking of subsidies, the profit margins of EVs have been reduced as well. After the elimination of new clean energy subsidies completely in the future, the actual product will become the crucial factor as companies compete in the market. 

He Xiaopeng, CEO of XPeng, has publicly stated: “The reduction and cancellation of new clean energy subsidies is beneficial for company innovation in the long-run. The subsidy is now gradually becoming a huge burden as some of the players in the market are cheating for it.” In addition, the fact that previously, the insurance cost of XPeng has increased. If the price of new energy vehicles increases significantly in the future, the ultimate harm will still fall on consumer groups.

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