Chinese automaker XPeng Motors has announced that it has suspended all P5 reservations and pre-orders in the four European countries where it currently has a presence. The decision comes just months after the company opened bookings for the P5 overseas. Citing anticipated export timing issues, XPeng will focus on the P7 sedan.
XPeng Engines ($XPEV) caused a stir in China last summer by sharing the initial price of its all-electric P5 sedan, the third electric vehicle in its lineup. Initially discounting the popular Tesla Model 3 by almost $14,000, it was clear that XPeng had come to compete.
When the P5 was officially launched in China last September, its prices remained very competitive alongside the announcement that XPeng would start selling it in select markets in Europe. Last March, XPeng began taking overseas P5 reservations, allowing customers to configure their P5 and reserve it with a deposit.
This year, the company has opened “experience stores” in Sweden, Denmark and the Netherlands to educate local consumers and gauge interest in the P7 and P5 before determining which electric vehicle to bring to each market first. respective European.
Those plans have now changed due to supply chain issues affecting much of the automotive industry. Instead, XPeng will focus on the P7 in Europe as the timing for the P5 remains unclear.
XPeng P5 entry into Europe suspended for foreseeable future
In an act of transparency and an open and ongoing dialogue with the press and its customers, an XPeng spokesperson shared the news with Electrek. Here is an official statement:
As we all know, global supply chain issues have been affecting the automotive industry for many months. Many automotive brands have had to adjust their production and delivery schedules – as well as their prices – to alleviate these challenges and uncertainties. We expect some of these challenges to persist. Our latest assessment is that the previously quoted delivery time for the P5 in Europe may no longer be achievable, due to some of these challenges.
In order to minimize any impact on our customers, we are therefore taking steps to suspend new bookings for the XPeng P5 (in Denmark, Norway, the Netherlands and Sweden). We believe these measures are in the best interests of our customers and will protect them from uncertainty.
For customers who have booked for the P5, we are currently actively communicating with them about the uncertainty of timelines and ensuring that our customers hear from us first. Customer experience is our top priority.
According to XPeng Motors, this P5 setback does not affect its long-term strategy in Europe or its intention to establish a local presence in the countries in which it currently operates. Instead, the automaker is pivoting to encourage European consumers to reserve a P7. sedan instead.
This model is currently on sale in Norway and available for test drives in Sweden, Denmark and the Netherlands. According to XPeng, deliveries of the P7 in Europe are expected to begin in the second quarter of 2023, if that gives you an idea of when we might possibly see the P5 follow.
XPeng’s next electric vehicle model to launch will be its G9 SUV, which is expected to start production in China in the third quarter of this year. Although the automaker hasn’t confirmed any plans to bring the G9 to Europe, it’s not unreasonable to believe it could arrive overseas before the P5.
As for the Chinese market, XPeng said production and shipments of all its models, including the P5, remain on track. The issues surrounding the company’s second sedan apply specifically to export issues to Europe.
Customers who previously held a reservation for a P5 in Europe will have the option to upgrade to a P7 if interested.
This is interesting news considering I was just in the Netherlands driving the P5 and visiting the local XPeng experience store. Just a few weeks ago, we were discussing whether XPeng would release the P5 or the P7 first in countries like the Netherlands, Sweden, and Denmark.
Guess now that we know it will be the P7. I appreciate XPeng’s transparency here and their decision to anticipate this as soon as possible, especially before official orders for the P5 start in Europe.
Due to these “export timing issues”, the P7 will have to be the Chinese automaker’s darling overseas, which may be a harder sell due to its sportiness. The P5 is similar in size, although it’s based on a different platform (XPeng’s first “David” platform shared with the G3 and G3i). As a result, the P5 is a bit more “family friendly”.
Interestingly, all is well in terms of production in China (according to XPeng), or at least as good as possible due to COVID-19 lockdowns and supply chain constraints, but the P5 is affected for the EU. I’m guessing the company is prioritizing these models for China, but haven’t gotten confirmation.
I’ve pressed an XPeng spokesperson to see if we’ll see the G9 in Europe before the P5 – although there’s been no concrete confirmation, that possibility is still very much open, so we’ll see.
Either way, the P7 should still work well overseas once XPeng can convert much of the ADAS software and functionality to suit EU roads and regulations, but not have the P5 delivered on time must sting. I think this model is better suited to Europe in my opinion.
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