“Science and Technology Innovation Board Daily”, October 11 (Reporter Tang Zhixiao): Following the popularity of the Mona M03, Xiaopeng P7+ appeared again.

According to Xiaopeng He, chairman and CEO of Xiaopeng Motors, the P7+ coupe SUV positioned within 0.3 million will be equipped with two Nvidia Orin X chips as standard, using the “AI Hawkeye Vision Smart Driving” solution, and the entire system supports advanced smart driving functions.

According to information, Xiaopeng Motors plans to launch the P7+ model to the global market. Its first stop will be at the Paris Auto Show in France, and it will implement 35 sales outlets in France, which is expected to reach 55 next year.

Pre-order plan to launch in mid-October to the global market

According to He Xiaopeng, at the core smart driving level, the P7+ removed the more expensive lidar part and instead adopted a pure visual intelligent driving solution. In the future, the P7+ “AI Hawkeye Vision” solution will be upgraded to support intelligent driving capabilities from door to door.

Currently, Xiaopeng Motor has not announced the official sales price of the P7+. Instead, it chose to announce the pre-sale price during the 2024 Paris Motor Show on October 14, for the global market, and plans to launch and deliver it in early November. The cars on display are being sent to major showrooms across the country one after another.

The “Science and Technology Innovation Board Daily” reporter visited Xiaopeng's offline stores in Shenzhen and learned that the first batch of stores arrived in 25 cities, including Shenzhen, Wuhan, and Changsha, but reservations have not yet started. “Acceptance (reservations) and test drives will not begin until October 14th.”

Looking at it now, He Xiaopeng has learned the lessons of MONA M03, and he said he passed the P7+ test on October 1. “In fact, the P7+ has already completed the climbing phase of production. In order for everyone to pick up cars earlier, the factory is already preparing production capacity in advance. The P7+ will definitely be another hit; the sooner people order, the sooner they can pick up the car.”

“I am one of the first Xiaopeng P7 owners and plan to buy an additional sedan with more space under the same brand.” Car owners interested in the Xiaopeng P7+ told the “Science and Technology Innovation Board Daily” reporter that currently old car owners will have additional discounts when purchasing additional P7+, and they can also share the first-time P7 owner's free charging rights at their own charging stations for life.

Regarding the pricing of Xiaopeng P7+, He Xiaopeng said that investors expect a gross margin of 20% or more for P7+. “We still need to meet and discuss. Eventually, we will hold another press conference in early November to showcase all the features of the P7+, announce its official domestic sales price, and deliver it as soon as it goes public.”

“Judging from the visible configuration, Xiaopeng has implemented strict cost control on this model,” an automotive industry analyst told the reporter. Since the P7+ eliminated the lidar, used a lithium iron phosphate battery, no front backup box, and the front cover used manual supports, if the MONA M03 is to continue its popularity, the P7+ may adopt an aggressive pricing strategy. “It is possible to set the starting price within 0.2 million yuan, or even within 0.19 million yuan.”

The European market is fiercely competitive

Earlier, at the MONA M03 press conference, He Xiaopeng said that Xiaopeng's internationalization strategy starts in Europe, is technology-oriented, and brings China's intelligence to the world.

According to reports, in January-May of this year, Xiaopeng G9's cumulative sales market share in Denmark and Norway reached 59.53% and 20.95% respectively, ranking first. As of September 18, the Xiaopeng G9 sold 141 units in Europe in September.

According to Xiaopeng Motor's financial report for the second quarter of 2024, its contribution to overseas sales in this quarter exceeded 10% for the first time, and Xiaopeng Motors entered many European countries, including Germany, the United Kingdom, Italy, and France.

As of July, the Xiaopeng G6 has launched right-hand drive versions in various countries such as Thailand, Singapore, and Malaysia, and delivery is scheduled to begin within this year.

Looking at it now, apart from Xiaopeng, Europe is also a favorite market for many Chinese NEV companies. Brands including BYD, NIO, and Zero Run are trying to gain a foothold in Europe.

From January to April 2024, BYD's sales volume in the European market was 7,890 units, up 532.7% year on year. The main export models include Tang, Han, Dolphin, Seal, ATTO 3 (domestic is Yuan Plus), and Seal U (domestic Song Plus EV Champion Edition). However, overall sales in the European market accounted for only 0.84% of total sales during the same period (overall sales volume of 0.9395 million vehicles during the same period).

Among the new car builders, the total sales volume of LEAPMOTOR in Q2 2024 was 8,6696 units. According to information disclosed by LEAPMOTOR to the media, the Zero Sports C10 and T03 have already been sent to Europe for more than 2,000 units. The sales target for this year is 6,000-7,000 units. The overall sales volume in the European market in the second quarter accounted for less than 3% of total sales during the same period.

NIO delivered 57,373 vehicles in the second quarter of 2024. According to Schmidt Automotive Research (Schmidt Automotive Research), in the first half of 2024, it registered 796 pure electric vehicles in 18 Western European markets (member states that joined the European Union before 2004, Norway, Switzerland, Iceland, and the United Kingdom), accounting for about 1.4% of total sales during the same period.

Some automobile industry practitioners pointed out that the biggest challenge for Chinese cars in the European market recently is that the EU plans to levy final countervailing duties on electric vehicles originating in China. Furthermore, European consumers have yet to develop the consumer mentality of Chinese car brands.

How do tariffs affect production?

According to the relevant draft, starting November 1, the EU can impose tariffs ranging from 7.8% to 35.3% on Chinese electric vehicles on top of the original 10% automobile import tariff.

However, the automobile industry practitioner mentioned above also added to the “Science and Technology Innovation Board Daily” reporter that many EU governments have clearly sent a signal to welcome Chinese car companies to invest and build factories in Europe. The purpose is to protect Europe's automobile production chain and employment rate.

Qiang Shunqiang, general manager of Xiaopeng Motor Western Europe, once said, “There are many models for Chinese car companies to develop in Europe. In addition to building local factories, they can also cooperate or contract with European manufacturers. The Stellantis Group's partnership with LEAPMOTOR is a great example.”

He believes that Xiaopeng Motor's short-term goal is to gain a foothold in Europe. Instead of pursuing sales volume, it is committed to establishing a brand image.

The “Science and Technology Innovation Board Daily” reporter learned that in addition to building local factories in Europe and cooperating with local companies, there are also companies that avoid the high tariffs set by the European Union by building factories in Southeast Asia, such as Thailand.

BYD opened its first electric vehicle factory in Thailand. The factory is expected to be put into operation within three years to produce electric vehicles and plug-in hybrid vehicles for the European market. Later exports of new energy models to the European market will greatly avoid the high tariffs imposed by the European Union.

According to relevant EU laws and regulations, as long as 60% of the value of parts are imported from taxable countries, and the added value of assembly does not exceed 25%, it will not be determined that there has been an act of evading tariffs.