With the P7+ in place, Xpeng's product matrix is finally complete.

At the beginning of the year, He Xiaopeng outlined Xpeng Motors' performance goals for the year in an internal letter, clearly stating that annual sales of 3 million vehicles are a threshold for automakers to rank among the top. To achieve this, Xpeng will introduce more new models and invest more human resources and R&D budgets.

To date, Xpeng Motors has not made many new moves this year, mainly launching the all-new pure electric MPV Xpeng X9 and announcing the first model in the MONA series, the M03. Targeting both the high-end and affordable markets, other efforts have focused on continuous improvements in smart cockpits and intelligent driving. However, objectively speaking, the price of the Xpeng X9 has already determined that it is unlikely to be a high-volume seller, and while the MONA M03 takes an affordable route, the 100,000-yuan market segment is already fiercely contested by major automakers. Therefore, merely introducing these two products is far from sufficient for Xpeng Motors.

In June this year, He Xiaopeng was active, first stating on social media "Mark today: Unite our minds, and great things will be accomplished," and then traveling to the US to experience Tesla's FSD, seemingly hinting at innovations in Xpeng Motors' intelligent driving technology. According to the latest report from foreign media CnEVPost, Xpeng Motors' new model F57, to be launched in the fourth quarter of this year, will adopt a new intelligent driving solution, and other Chinese new energy automakers are expected to follow suit within the next 12-16 months.

In response, Tesla founder Elon Musk, who has always supported the "pure vision approach," commented with "..." on social media. While this ellipsis may not seem to contain much information, when combined with Musk's previous comment that "Chinese automakers (presumably referring specifically to Xpeng) are the most competitive," Musk may already feel the technological threat posed by this new energy automaker from the East.

Xpeng's new model, well-prepared

As the carrier of the latest intelligent driving technology, the discussion around Xpeng Motors' new model F57 has naturally gained momentum. Facing Musk's "three dots," He Xiaopeng also used simple "three points" to convey information about the new model F57: P7+, 5 meters+, and technology+.

Combining these three pieces of information, it is not difficult to conclude that the official name of the new model is Xpeng P7+, positioned higher than the Xpeng P7i, and will also utilize the brand's latest technology. Although we cannot yet know which technologies the new car will adopt, Xpeng's new intelligent driving solution will undoubtedly be first deployed on the Xpeng P7+. More importantly, the official image of the Xpeng P7+ does not show a lidar, suggesting that the Xpeng P7+ is likely to use a pure vision high-level assisted driving solution similar to Tesla's. No wonder Musk commented with "..."; here comes the competition.

As early as May this year, during an earnings call, Xpeng announced that it would deliver a new B-segment pure electric sedan in the fourth quarter of this year, which will be the first model to achieve a 25% reduction in technology costs.

Xpeng Motors is a pioneer in the standardization of lidar for automotive use. In the early stages of the emergence of intelligent driving technology, some automakers had already discovered the advantages of lidar, but its high price and high computing power requirements took up a significant portion of costs and R&D budgets. Under such circumstances, Xpeng Motors, which has always focused on intelligent driving, invested more boldly in hardware, launching the world's first mass-produced lidar-equipped smart car, the Xpeng P5, before other automakers followed suit.

Automotive lidar has been developed for many years, with several upgrades and iterations in technology, resulting in cost reductions. The price of a single lidar has dropped from at least $20,000 in 2019 to just a few hundred dollars now. LeTV noticed that in Leapmotor's brand plan announcement, the A-series models priced at 100,000 yuan will be mass-produced next year and will also be equipped with lidar and high-level intelligent driving capabilities, indicating that the cost barrier for lidar has been gradually overcome.

However, even as the hardware costs of lidar are declining, Xpeng Motors has resolutely switched to the "pure vision approach" for intelligent driving after the timing is right, indicating that hardware costs are still greater than computing costs. Another detail is that Xpeng's high-level intelligent driving models all place lidar on both sides of the front grille. Compared to other designs that place lidar on the roof, each Xpeng model incurs an additional hardware cost for lidar. When Xpeng eliminates lidar, the reduction in hardware costs will be more pronounced than for other automakers, making it easier to achieve the goal of a 25% cost reduction.

Regarding Xpeng's latest intelligent driving technology, LeTV believes that its end-to-end AI large model-based intelligent driving will be its main highlight. Many automakers adopt intelligent driving solutions that occupy networks or use BEV+Transformer, while Xpeng Motors has achieved mass production of an end-to-end AI large model consisting of XNet (recognition) + XPlanner (control) + XBrain (learning). To date, automakers have not yet fully entrusted their intelligent driving systems to AI, which undoubtedly underpins the advantages of Xpeng's latest intelligent driving technology.

High cost-effectiveness, surpassing Xiaomi?

Based on the three points of information revealed by He Xiaopeng, LeTV has also roughly understood the product tone of the Xpeng P7+. Compared to the Xpeng P7i, the Xpeng P7+ will have a longer body length and become the brand's new flagship sedan. In addition to using the latest intelligent driving technology, its design will also be bolder.

Specifically, the headlight cavity elements will be designed more delicately, the rear will adopt a fastback design, and the cabin section will be moved backward. Combined with its body length exceeding 5 meters, the interior space of the Xpeng P7+ is likely to be even more impressive than that of the Xpeng P7i. Additionally, the upturned ducktail shape and taillight design at the end are indeed more distinctive than those of the Xpeng P7i.

From a market perspective, the Xpeng P7+, with a body length exceeding 5 meters, will enter the competition in the mid-to-large pure electric sedan market, where the competitors are formidable, including the Xiaomi SU7, ZEEKR 001, IM L6, IM S7, and others.

Theoretically, the Xpeng P7+, positioned higher than the Xpeng P7i, will naturally have a higher price. However, based on the goal of being the first model to achieve a 25% reduction in technology costs, the lidar-less Xpeng P7+ will have more room for price reductions compared to competitors. LeTV boldly speculates that the selling price of the Xpeng P7+ will be similar to that of the Xpeng P7i, with a starting price most likely just above 200,000 yuan, or even potentially below 200,000 yuan.

Of course, such pricing will have a certain impact on the Xpeng P7i, as more consumers will likely choose the larger Xpeng P7+ at the same price point. To this end, the new Xpeng P7i will undoubtedly adopt the latest technology from the Xpeng P7+, also removing lidar, and its price is highly likely to be even lower, making it more cost-effective when competing with models like the ZEEKR 007 and Tesla Model 3 in the same segment.

Ultimately, it depends on how Xpeng plans its future product line. After the official launch of the P7+, perhaps the P7i will also undergo corresponding price adjustments, even entering the 150,000 to 200,000 yuan range. LeTV believes that only such a product layout can fully leverage the cost-effectiveness of Xpeng's sedans, enabling Xpeng to gain a certain competitive advantage in the B-segment market.

Catching up later, still opportunities

Considering the continuously adjusted guidance prices of the Xpeng G6 and the new Xpeng G9, it is not difficult to guess Xpeng Motors' current mindset: the need for higher sales figures to prove itself. Looking back, He Xiaopeng's bold statement at the beginning of this year that "3 million sales are just the threshold" was made with the anticipation of avoiding being "blocked on both ends," and a more aggressive product layout was not difficult to predict.

After successively deploying the MONA M03 and the Xpeng P7+, Xpeng's product matrix has indeed been greatly enriched, and more importantly, it has filled the current shortcomings in its sedan product line. With the G6 and G9 still capable of competing, Xpeng's sales performance in 2025 should improve significantly.

A few years ago, new force brands were reluctant to enter the mainstream market due to their relatively weak brand influence and the heavy presence of traditional automakers in this market. They could only differentiate themselves by pursuing high-end and intelligent routes. However, the new energy vehicle market has shifted from an incremental market to a stock market, and the mainstream market is a hurdle that new force players must face. Therefore, in addition to Xpeng, NIO has also launched the Ledao brand targeting family users, while Leapmotor has successfully entered the top five of new force monthly sales rankings with its affordable products, and its growth momentum remains unabated.

While the mainstream market is a hurdle that new force players must face, Xpeng Motors has also left itself a backhand. By upgrading its intelligent driving technology and further reducing costs, Xpeng can quickly capture market share with new models that offer high cost-effectiveness. Moreover, there are not many automakers that have ditched lidar, with only a handful of brands like Xpeng, Tesla, and Jiyue. Foreign media reports that other domestic brands may take 12-16 months to follow suit.

In other words, Xpeng will reap the market dividends brought about by "ditching lidar" during this year, which may be more substantial than the revenue generated by the affordable Xpeng MONA M03.

Source: LeTech