Chinese electric carmaker Xpeng prices its recent sedan at $24,700, undercutting Tesla

July 20, 2021: -Chinese electric carmaker Xpeng Inc. has priced its recent P5 sedan as low as 160,000-yuan ($24,694) days after Tesla launched a cheaper version of its Model Y sports utility vehicle

The aggressive pricing from Xpeng comes as China’s electric vehicle market continues to heat up with increasing players.

The P5, Xpeng’s third production model, and second sedan after the P7 — was launched earlier this year. There are six different car versions with additional features, ranging from 160,000 yuan to 230,000 yuan.

Xpeng’s P7 sedan starts from 229,900 yuan after subsidies. Model 3 of Tesla starts from 250,900 yuan in China.

The Guangzhou-headquartered company uses Lidar, or light detection and ranging technology, in the P5 to boost some of its semi-autonomous driving features. Lidar uses laser beams to map out the surrounding environment and measure the distance of objects to help the car determine obstacles in its pathway.

Four out of the six P5 models come fitted with Lidar and Xpeng’s advanced driver-assistance system (ADAS) called XPILOT.

Xpeng is one of China’s electric vehicle industry players, spanning from established automakers to start-ups.

Tesla, which has faced weeks of bad press in China, is introducing a cheaper version of its Model Y SUV with a shorter driving range this month, starting at 276,000 yuan after subsidies.

Xpeng delivered 17,398 vehicles in the second quarter of the year, a 439% increase year after year. The company will be hoping the P5 can help it continue growing sales in a new price segment.

This month, Xpeng, already listed in New York, carried out a so-called dual primary listing in Hong Kong and raised 14.02 billion Hong Kong dollars ($1.8 billion).