Xpeng launches AI-powered sedan in challenge to Tesla’s FSD autonomous driving system

The Guangzhou-based company set three prices for the P7+: 186,800 yuan (US$26,104), 198,800 yuan and 218,800 yuan for the sedan – depending on the different driving ranges – compared with the presale price of 209,800 yuan, Xpeng said on Thursday. The P7+ is therefore at least over 5 per cent cheaper than Tesla’s Model 3, which starts at 231,900 yuan. The company said it will start delivering the vehicles on Thursday.

“The Xpeng P7+ is striving to provide the world’s best intelligent driving solution,” said He Xiaopeng, Xpeng’s founder and CEO.

China’s auto sector is experiencing a great deal of upheaval at the moment due to a price war and because manufacturers are scrambling to add more smart features to their vehicles to lure customers. The country is home to dozens of smart car makers, whose products are equipped with autonomous driving technologies, voice-activated control systems and facial-recognition software. Such advances have been fuelled by drivers’ desires to wield greater digital connectivity.

Tesla is among the carmakers that have embraced autonomous driving and the company has said it will be a key growth driver in China’s EV industry. The Austin, Texas-based company was initially expected to launch its FSD software on the mainland at the end of this year and the delay has opened the door for its Chinese competitors to pull ahead with releases of their own.

“The later Tesla launches its FSD [in China], the bigger the benefits its Chinese rivals can reap,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a consultancy.