XPeng cuts price of G6 by 5%

China’s XPeng Inc. (NYSE:) announced on social media Monday that the electric automaker has temporarily cut the price of its bestselling G6 electric SUV by about 5%.

The Guangzhou-based company cut the price of the G6 by 10,000 yuan (US$1,400), bringing the vehicle’s starting price down to 199,900 yuan. According to the announcement, the discount will continue until the end of the month.

Aimed at sustaining strong sales, the reduced vehicle price is the latest sign of intensifying competition in the region’s fast-growing auto market.

XPeng’s move follows a campaign by China’s BYD, who this month offered discounts of up to 20,000 yuan – or 8 per cent – on its Han-branded EV sedan on December 1.

XPeng began deliveries of the G6 in July, which significantly amplified the carmaker’s sales volume from August through November.

During a media briefing in July, Brian Gu, the president of the carmaker, stated the company’s anticipation of delivering a minimum of 10,000 G6 vehicles per month and outlined plans to escalate production of this new model.

In the previous month, Xpeng managed a delivery volume of 8,750 units, showing minimal variation from October. Notably, the G6 deliveries in November accounted for less than half of Xpeng’s overall sales, which reached an all-time high of 20,041 units.

Shares of XPEV are up 3.83% in mid-day trading on Tuesday.