He Xiaopeng secretly learned Lei Jun's "tactics".
01. Starting from 195,800 yuan, He Xiaopeng is also leveraging emotional value
Within 9 minutes of its official launch, the number of firm orders for the XPeng G7 exceeded 10,000. After that, He Xiaopeng decided not to disclose the subsequent order numbers.
“Just now, I was discussing with the team about how many orders we had in the first 3 minutes. Everyone was quite shocked and suggested we should publicize it. However, when I thought about the 200,000 orders Xiaomi YU7 received in 3 minutes, I felt that no matter how we publicized the XPeng G7, it wouldn't seem good enough,” He Xiaopeng told the media after the G7 launch event on the evening of July 3.
How shocking were the order numbers? It's unknown. All that Caixin could see was that He Xiaopeng's beaming smile that night was hard to hide.
The XPeng G7 is positioned as a mid - sized pure - electric SUV, sitting between the G6 and G9 in XPeng Motors' product lineup. At this launch event, a total of 3 models were introduced: the 602km - range Max version priced at 195,800 yuan, the 702km - range Max version priced at 205,800 yuan, and the 702km - range Ultra version priced at 225,800 yuan.
As for the pre - launch incentives, the Max version can enjoy an additional limited - time configuration package worth 17,000 yuan, while the Ultra version has the value of the complimentary configuration package increased to 22,000 yuan.
In summary, the XPeng G7 has three main selling points: first, it has the world's highest single - vehicle computing power among mass - produced cars; second, it features intelligent assisted driving and an intelligent cockpit that rank among the top in the industry; third, it offers a spacious interior and high comfort level, appealing to a wide range of family users.
At the launch event, He Xiaopeng stated that the G7 is the first AI car in the market with the computing power for L3 - level conditional autonomous driving. The Ultra version is equipped with three self - developed Turing AI chips by XPeng, with a combined effective computing power of 2250 TOPS; the Max version is fitted with two NVIDIA Orin X chips, with a total computing power of 508 TOPS.
What does this mean? There's a saying in the industry that “200 TOPS of computing power is enough to drive a smart car”. For a horizontal comparison with competitors, Tesla uses two HW 4.0 chips with a total computing power of 720 TOPS; Li Auto uses one Thor - U chip with a total computing power of 700 TOPS.
In terms of the intelligent cockpit, the XPeng G7 uses one Turing AI chip and one Qualcomm Snapdragon 8295P, with a total computing power exceeding 800 TOPS. Most models in the current market only use a single Qualcomm Snapdragon 8295P chip with a computing power of only 60+ TOPS for their cockpit solutions.
Why is XPeng so committed to investing in computing power? He Xiaopeng explained that “computing power is the primary criterion for evaluating intelligent assisted driving”.
Moreover, the XPeng G7 also adopts the AR - HUD system “Chasing Light Panoramic” developed in cooperation with Huawei, and is standard - equipped with a vehicle - end VLA visual language model + VLM visual language action model across all versions.
The former is claimed to offer the best in - market experience, clearly guiding drivers on the right route. The latter raises the vehicle's performance ceiling, making it smarter, enabling more intelligent functions and better safety, which requires powerful computing power as support.
Intelligent assisted driving has always been a hallmark of XPeng Motors. The company even often self - deprecates as “tech geeks”. This has also become an important reason for many users to choose XPeng. In some ways, the hardcore technology and strength in intelligence are the emotional value that XPeng brings to users. This time, He Xiaopeng intends to maximize this value through the G7.
He Xiaopeng only realized the importance of leveraging emotional value in the past year or so, and he has Lei Jun to thank for that. With the strong sales of Xiaomi SU7 and YU7, Lei Jun, known as the “master of emotional marketing”, has become a key study object for many auto industry tycoons.
“Previously, I thought that to create a good product, one needed to balance technology and art, with quality as the foundation. Recently, I've come up with a new concept: emotion is the pinnacle, which redefines the four key elements of a product,” said He Xiaopeng.
So, does the XPeng G7 offer high emotional value? After seeing the XPeng G7 Ultra priced at 225,800 yuan, some netizens believe that the price is quite competitive. People didn't expect the G7 to be so much cheaper than its competitors. “I don't know how it performs in reality. I'll book a test drive right away,” one netizen said.
Wan Yu, the product manager of the XPeng G7, said that during the pre - launch research, about 80% of the users who placed small deposits chose the Ultra version. It is estimated that the stable sales proportion of the Ultra version in the future can be maintained at around 60%. “Users who buy XPeng cars trust our continuous OTA capabilities and the practical experience of computing power applications,” he added.
02. Can the G7 become the next big hit?
Why is the XPeng G7 priced so much lower than its competitors? One reason is that the car doesn't use a lidar and adopts a pure - vision intelligent driving solution, which is the same as Tesla's technical approach.
In fact, the XPeng G7 is directly targeting the Tesla Model Y this time. At the launch event, He Xiaopeng also showed a promotional screenshot of Tesla's refreshed Model Y launched in January this year, which said “Feel free to compare”, aligning himself with Lei Jun.
As the sales champion in the 200,000 - 300,000 yuan price range for years, the Tesla Model Y has been the benchmark for most automakers. “Given the rapid product iteration of Chinese automakers, Tesla has managed to maintain its popularity, which is truly worthy of learning from the entire industry,” said Wan Yu.
However, the outside world is concerned that the XPeng G7 now has to face not only the refreshed Tesla Model Y but also the Xiaomi YU7, which is a new challenge. Are He Xiaopeng and Lei Jun both allies and rivals? Is the final price range of 195,800 - 225,800 yuan for the XPeng G7 a result of concerns about the YU7?
In response to the outside concerns, He Xiaopeng distanced the G7 from the YU7. He said, “The G7 and YU7 belong to different segments. The G7 is more targeted at family users. We emphasize its technological attributes and the ability to offer future - tech experiences.”
In his view, the market used to demand well - rounded “all - rounder cars”. However, as post - 95s and post - 00s enter the car - buying market, their demand has shifted to “cars with extremely long strengths”. Therefore, the G7 aims to excel in terms of technological sense and intelligence.
In contrast, the driving experience of the Xiaomi YU7 is more similar to that of the BMW X5L, achieving a good balance between sportiness and comfort. “The XPeng G7 is more like the Li L7, which focuses on pure comfort. Subjectively, both offer better comfort than the refreshed Tesla Model Y,” said an industry insider who has test - driven both cars.
Multiple industry insiders also told Caixin that although the two cars seem to be similarly positioned, the product definitions and styles of the XPeng G7 and Xiaomi SU7 are completely different. Their key features vary greatly. The Xiaomi YU7, like the Tesla Model Y, emphasizes sporty handling. The XPeng G7 focuses on comfort for family use. Overall, they seem to complement each other's weaknesses.
Besides targeting the segment - leading Tesla Model Y, another model that He Xiaopeng compared the G7 with at the launch event was the Mercedes - Benz GLE, a fully imported mid - to large - sized SUV that emphasizes comfort, with an official starting price of 699,800 yuan.
According to He Xiaopeng, the G7 has introduced something new in terms of comfort: the “Taiji AI chassis”. Based on hardware such as double - wishbone front suspension + five - link independent rear suspension and CDC continuously variable damping shock absorbers, more AI algorithms have been added. It can pre - identify speed bumps, bumpy roads, uneven surfaces, and obstacles, and also has anti - motion - sickness functions.
According to XPeng Motors' official data, the G7 outperforms the Tesla Model Y and Mercedes - Benz GLE in multiple chassis comfort indicators and also has the best sound insulation. Theoretically, this can attract some consumers who are dissatisfied with the comfort of the Model Y.
To meet the needs of more consumers, the XPeng G7 has made many preparations. For example, it uses an 800V high - voltage platform across all versions and has 5C ultra - fast charging capabilities. It features a single - motor rear - wheel drive layout, with a maximum power of 218kW for the drive motor. The official 0 - 100km/h acceleration time is between 6.5 and 6.6 seconds. These basic data are intuitive indicators for ordinary consumers to evaluate a car's performance.
In addition, XPeng Motors' senior management attaches great importance to consumers' suggestions. Wan Yu said that the 602 Max version, which has the lowest price threshold, was added after the pre - order phase based on user feedback. “Firstly, users hoped for a more impactful price for the G7. Secondly, many users thought that a range of around 600km was sufficient for city driving,” he explained.
It seems that XPeng aims to make the G7 another best - selling model after the MONA M03 and XPeng P7+. In terms of price, the car is quite competitive. However, to become a hit, favorable timing, geographical advantages, and good human relations are all essential.
However, after the G7's launch, there are still some issues. For example, the Turing chip used in the intelligent cockpit needs to be installed by the owner at the dealership later. Although He Xiaopeng explained that this was pre - designed during the development process, the installation time would be very short, and the dealerships have the capacity to handle it, many netizens still expressed their confusion.
03. While competitors are sacrificing profits for market share, where does XPeng's chance of success lie?
He Xiaopeng is confident in the G7's potential to become a hit, but some investors are worried about XPeng Motors' financial situation.
After all, the industry - wide price war and the situation where some automakers are sacrificing profits to grab market share are still ongoing. XPeng Motors has invested heavily in R & D, especially in areas such as the Turing AI chip. When will the company finally turn a profit?
“Our business performance this year will be much better than everyone expects. I'm very confident about this,” said He Xiaopeng. In his view, investing billions in chip R & D is a standard R & D expense, and achieving profitability in the fourth quarter is definitely “not an unattainable goal”.
XPeng Motors' official data shows that from January to June 2025, the company delivered a total of 197,189 new cars, exceeding the full - year delivery volume in 2024. In the second quarter of 2025, the cumulative delivery volume reached 103,181 units, setting a new single - quarter record. In June 2025, 34,611 new cars were delivered, a year - on - year increase of 224%, and the delivery volume has exceeded 30,000 units for 8 consecutive months. Meanwhile, the cumulative overseas sales have exceeded 18,701 units, a year - on - year increase of 217%.
Data from the Yiche App shows that from January to May 2025, the three best - selling models of XPeng Motors were the MONA M03, P7+, and G6, with sales volumes of 72,240, 37,876, and 18,902 units respectively.
Among them, the MONA M03, with an official starting price of 119,800 - 139,800 yuan, is the sales champion in the A - class pure - electric sedan market. The XPeng P7+, with an official starting price of 186,800 - 208,800 yuan, is the second - best - selling model in the C - class pure - electric sedan market. The XPeng G6, with an official starting price of 176,800 - 198,800 yuan, ranks seventh in the B - class pure - electric SUV market.
Despite the impressive sales, many industry insiders and the public believe that XPeng achieved this through “low - price strategies”. “We never think that XPeng is pursuing a cost - effective approach,” He Xiaopeng said, citing the MONA M03 as an example, which is about 25,000 - 30,000 yuan more expensive than its peers in the same class.
Undoubtedly, XPeng Motors has gradually emerged from its survival crisis in the past three years. The financial report shows that in 2024, the company achieved a revenue of 40.87 billion yuan, a year - on - year increase of 33.2%. The gross profit margin reached 14.3%, a year - on - year increase of 12.8 percentage points.
After the addition of Wang Fengying, known as the “Iron Lady”, XPeng Motors' cost