Xpeng, the renowned electric vehicle manufacturer, has recently kicked off pre-sales for its latest electric sedan, the P7+, in China. This move is part of the company’s strategy to introduce another groundbreaking model to the market. Analysts at Deutsche Bank have shared their insights and expectations for this new model.
The company has revealed that the P7+ has already garnered over 30,000 cancellable unit orders, indicating strong demand for the sedan. Deutsche Bank’s analyst Wang Bin’s team anticipates that the model will achieve an average monthly sales figure of around 6,000 units, aligning with market expectations.
Xpeng unveiled the P7+ to European consumers in Paris on October 14 and simultaneously made it available for pre-sale in China at a starting price of RMB 209,800 ($29,440). Chinese customers who place a refundable RMB 99 reservation will receive a RMB 3,000 discount on their purchase price. The sedan is scheduled to go on sale and commence deliveries in China in early November.
The pre-sale price of the P7+ is deemed reasonable by Wang’s team and is expected to see a further reduction when final official prices are announced. Given Xpeng’s pricing history, the team estimates that the final price for the P7+ could start at RMB 190,000.
With a larger size compared to the Xpeng P7 and other competitors like the BYD Han EV, Lynk & Co Z10, Xiaomi SU7, and Tesla Model 3, the P7+ sedan boasts a longer wheelbase and height. Xpeng has positioned the P7+ as the world’s first AI vehicle capable of autonomous driving in both urban and rural settings, thanks to its innovative “Eagle Eye” vision-based perception technology.
Furthermore, Xpeng has implemented a cost-saving strategy to reduce vehicle BOM costs by 25% and autonomous driving hardware costs by 50%. The P7+ is the first product to benefit from these initiatives and is expected to deliver double-digit gross margins, as per Deutsche Bank’s analysis.
Looking ahead, Xpeng plans to launch a total of 30 new products over the next three years, including new models and facelifts. In 2025, the company is set to introduce six new products, such as the G5 compact SUV, G7 large SUV, H01 ultra-large SUV, Mona mid-size SUV, P9 ultra-large sedan, and a new generation P7 sedan. The following year, Xpeng aims to launch four additional products, including a compact Mona SUV, new generation G9 large SUV, PHEV version of the H01 ultra-large SUV, and an ultra-large MPV.
Based on these upcoming product launches, Deutsche Bank forecasts that Xpeng will sell 380,000 units in 2025 and 600,000 units in 2026. The company’s commitment to innovation and expansion bodes well for its future growth and market presence.
