Xpeng is continuing its steady progression in China while it handles its first crisis of sorts. While the press and Xpeng’s clientele have been positive with the newly upgraded G3, some of the previous G3 buyers have expressed concerns. Xpeng listened and quickly worked out a sweet deal for those who bought an Xpeng G3 beforehand.
Xpeng — 60% Residual Value for Trade-In
Xpeng Motors released the Xpeng G3 2020 Edition on July 10 with a higher-performance version. With an extended NEDC driving range (520 km) and an energy density of 180 Wh/kg, some G3 2019 customers wondered how they could get the same without buying new. Somehow the fast update and delivery pace Xpeng showed surprised many and left some who placed orders a few months ago wondering.
It took no time for He Xiaopeng, Xpeng’s CEO, to send a personal message on his Weibo account expressing apology and regret for the misunderstanding of the pricing for the new G3 2020 edition. “Our customers’ trust in us and their long-standing support is one of the most valuable assets,” He said.
The company also released a new plan exclusively for current G3 2019 customers — any G3 2019 version purchaser who has not yet received the vehicle can convert the order for a new G3 2020 edition. As for other G3 2019 customers, the company will not leave them in the lurch and is offering 2 options.
The first options is coupons equivalent to RMB10,000 (roughly $1,450) valid for 5 years from the date of issuance — for vehicle maintenance, supercharging, repairs, and gifts, or as a repurchase subsidy for a new vehicle by the car owner or his/her direct family members.
The other option is that after 3 years, customers who purchased the G3 2019 version can trade it in for any new model at that time with a 60% discount on the original G3 2019’s post-subsidy purchase price, provided that the vehicle has been driven less than 80,000 km and has no major damages (according to standards for the secondary car market). Any trade-in purchase will be eligible for additional promotional benefits at that time.
When I asked why it was a 60% trade-in based on residual value, I was told that it was based on the standard trade-in policy for mainstream joint venture combustion engine carmakers in China. EVs depreciate faster, hence the 60% discount rate.
Xpeng G3 Achieves Highest Score among EVs in China’s Latest C-NCAP Safety Test
The Xpeng G3 snatched a total score of 92.2% in the latest China New Car Assessment Program (C-NCAP) safety test. That is 8.6 percentage points higher than the next electric vehicle. The 2019 G3 got the highest total score among EVs, a 5-star standard safety rating.
According to the official C-NCAP results, the G3 reached a 96.50% passenger safety rating and 94.09% in overall active safety.
Overall, the G3 did very well in the C-NCAP’s 64-kilometer offset collision test. So far, the vehicle’s automatic emergency braking function has recorded zero malfunctions — in 150,000 km of road tests.
He Xiaopeng said: “The C-NCAP results are a strong endorsement of Xpeng’s in-house R&D, safety design and quality control capability. The new C-NCAP regulations are the most stringent yet for EVs, but the G3 has matched or exceeded these standards, rating it the safest electric vehicle in the China market.”
We learned Xpeng concentrated a lot of energy and resources in R&D, something it claims to have up to 50–60% of its entire workforce focused on. This is one thing the company attributes its high safety scores to.
SemiCon Showcases Xpeng — What an Honor
Venerable SemiCon is still happening and it was great seeing traditional manufacturers we’ve known for decades rub elbows with startups.
On the center stage, Xpeng was displaying its G3 next to GM’s GMC autonomous vehicle without a steering wheel. The G3’s doors were fully opened and you could hear questions mostly centering on when the car would make it to our North American shores.