Subsidy Decline Xiaopeng Announces Price Increases for the Whole Series Weilai will not adjust prices for the time being

In 2022, the subsidy for new energy vehicles will decline by 30%, and due to this impact, many car companies may raise prices. Following Tesla's recent announcement of the Model 3 and Model Y price increases, Xiaopeng Automobile also announced a price increase for the whole series, but Weilai said that it would not adjust the price for the time being.

On January 11, Xiaopeng Automobile announced the latest subsidized prices of all models.

Among them, the Xiaopeng flagship sedan P7 series rose by 4300 to 5900 yuan, and the price after the latest subsidy was 224,200 to 409,900 yuan; the new P5 series rose by 4800 to 5400 yuan, and the price after the latest subsidy was 162,700 to 229,300 yuan; the SUV model G3i series rose by 4800 to 5400 yuan, and the latest subsidy price was 154,600 to 193,200 yuan.

It is reported that Xiaopeng only adjusted for the price this time, and there was no change in design and configuration.

According to public information, the total delivery volume of Xiaopeng Automobile in 2021 is 98,155 vehicles. Among them, P7 delivered 60,569 vehicles in total throughout the year, accounting for 62% of the total delivery volume of the whole year;P 5 opened large-scale deliveries in October this year, delivering 5,030 vehicles in December; and the cumulative annual delivery of its G3 (that is, G3i) series products also reached 29,721 vehicles.

The general price increase of Xiaopeng Automobile is related to the latest policy of subsidies for new energy vehicles introduced at the end of last year. On December 31, 2021, the Ministry of Finance and other four ministries and commissions issued the Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022 (hereinafter referred to as the "Notice"), which clarifies that the subsidy standard for new energy vehicles in 2022 will be reduced by 30% on the basis of 2021.

This means that the subsidies enjoyed by new energy vehicle companies will be reduced again, and the cost of this part will be transferred to the price of the car to a certain extent.

After the introduction of the subsidy plan, a number of car companies have issued signals to raise the price of cars. Among them, Tesla took the lead in explicitly raising the price of the car. At present, the price of its domestic Model 3 and Model Y rear-wheel drive versions is 265,700 yuan and 301,800 yuan respectively, up 10,000 yuan and 21,000 yuan respectively.

Another new car-making force, Weilai, recently said that it would not raise the price of vehicles for the time being. Compared with Tesla, Xiaopeng and other brands, Weilai car price positioning has been high, and several models currently on sale do not use battery rental solutions, and the price is more than 400,000 yuan.

Will the decline in new energy subsidies affect the overall sales volume of the new energy vehicle market? Cui Dongshu, secretary general of the Association of Automobile Associations, analyzed that at present, many car companies have adopted short-term price insurance measures, and last year, car users could buy according to the price before the price increase, which also pushed up the order volume at the end of last year. Cui Dongshu believes that in the short term after that, some car companies may raise prices, but in the long run, as more and more car companies compete for new energy tracks, technological progress and market competition factors will not make car prices not be significantly pushed up. With the great increase in the popularity and penetration rate of the new energy vehicle market, the decline of subsidies will not change the general trend of rising sales of new energy vehicles.

Image source: Xiaopeng