On February 21, the Xpeng P5 460 models orderers in mainland China took to social media platforms to express their frustration at not receiving their P5 as scheduled.
Xpeng said, “Users who encounter delayed delivery can choose to withdraw, change the allocation or keep waiting, there is no compensation plan for the moment.”
Users are not convinced by this response from Xpeng. Some consumers pointed out that the customer service of Xpeng proposed a “worry-free refund” of only RMB 5,000 when ordering the EV. The car purchase contract signed on October 10, 2021, during which car insurance, national new energy subsidies, and the purchase of electricity rights and interests have been canceled or have increased in price, has not given any compensation for the losses incurred during this period.
Tight battery supply affects Xpeng’s P5 delivery
In the Lunar New Year, in fact, the supply of batteries has sounded the alarm. After the holiday lithium iron phosphate batteries prices rose for five consecutive trading days, and on February 14 the average price exceeded 400,000 RMB / ton. This shows that the market demand for batteries is rising rapidly.
Xpeng said that “due to the epidemic, the industry is facing an extremely tight supply of key components, including lithium iron phosphate batteries, which has caused great uncertainty in the production of the Xpeng P5 460 models, resulting in orders for the 460 models not being delivered in time for the scheduled delivery cycle”.
The key to success is to have a complete industrial chain, and as seen in BYD, the battery technology and even the chip technology are all made in-house so as to have a stable output, and in order to remain competitive in the competitive Chinese EV market, Xpeng needs to deal with the problem of unstable supply chain.
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