Purchasers of vehicles made by Xpeng Inc (NYSE:XPEV) who make deposits before midnight on January 10, 2022, can continue to enjoy 2021’s high subsidies.
What Happened: The short transition period is on offer for customers in China by the Guangzhou-based electric vehicle manufacturer, according to a report from CnEVPost. Those that purchase their cars after January 10 will see their subsidies cut by 30%.
See Also: How To Buy Xpeng Motors Shares
Why It Matters: This month, Xpeng-rival Nio Inc (NYSE:NIO) waived off the current low subsidy to customers who put a deposit on ES8, ES6, and EC6 vehicles before the end of 2021 and receive deliveries by March 31, 2022.
Chinese state subsidy for EVs is slated to decline each year by 10%, 20%, and 30% from 2020-2022, as per an earlier announcement.
Last month, Tesla Inc (NASDAQ:TSLA) raised Model 3 and Model Y vehicles prices in China to bring equilibrium in demand and supply.
Rumors have surfaced that Xpeng’s three available models, The G3i, P5, and P7, will see benefits cut by half, reported CnEvPost, citing a report from local Chinese media.
Xpeng benefits package for P7 buyers will be reduced by RMB 5,000 - RMB 10,000 ($784-$1,569), P5 by RMB 4,000 ($627) and G3i by RMB 5,000 ($784). As per the report, customers will no longer be offered 0-interest or low-interest packages.
Price Action: On Monday, Xpeng shares closed mostly unchanged at $46.07 in the regular session and fell almost 0.5% in the after-hours trading.
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