XPeng (XPEV) expands service network ahead of EV sales in 3 new markets in Europe
Chinese EV automaker XPeng Motors has shared plans for four service and delivery centers coming the next few months that will soon serve customers in additional markets of Europe. Although the automaker has had a sales footprint in Norway for years, it has waited to begin EV sales in other markets in Europe. With the start of sales in three additional countries scheduled for this quarter, XPeng is implementing the proper network to support them.
Xiaopeng, or XPeng Motors ($XPEV), is a Chinese EV manufacturer founded in 2014 and is headquartered in Guangzhou. In 2018, XPeng launched the G3 SUV in China, followed by the P7 sedan in 2019. Next came the P5, which we were able to test drive alongside the P7 in the Netherlands – one of several markets in Europe the automaker set up an experience center ahead of official sales.
XPeng’s journey into Europe began in Norway with the P7, tallying the first deliveries in the summer of 2021. Not long after, the automaker began hyping up its next EV, the G9 SUV, which was also planned to eventually make its way to Europe alongside the P7 and P5.
By February 2022, XPeng announced retail agreements in the Netherlands, Sweden, and Denmark, with the intention of building brand recognition and understanding each market’s customer needs ahead of official sales. Before then, however, the automaker halted plans to bring the P5 overseas, citing export timeline issues.
Still, the P7 will see a 2023 refresh and will still be joined by the G9. With sales expected to begin in the NL, Sweden, and Denmark this quarter, XPeng has shared plans for the brick and mortar needed to achieve the customer service experience it has long been promising in Europe.
XPeng bolsters network ahead of Q1 EV sales in Europe
According to XPeng Motors, Europe will see four company-branded service and delivery centers operational in the first half of this year. These physical locations in Norway, Sweden, Denmark, and the Netherlands will manage predelivery inspections, after-sales, and EV repairs.
XPeng customers in Europe will be able to take advantage of a service agreement with their EV purchase that includes an eight-year warranty for their respective vehicle’s battery. They’ll also have access to necessary EV information like servicing requirements and maintenance history.
These services, as well as tire storage, will soon be available at the upcoming service centers and drivers will be able to track their vehicle’s status using the automaker’s app. XPeng vice chairman and president, Brian Gu, spoke:
We’re establishing our first tier of XPeng Delivery and Service Centers in Europe to help realize our goal of creating a seamless yet unique XPeng customer journey, with customer experience at the heart of our offering.
Here is the current timeline for the new brick-and-mortar XPeng locations in Europe:
- XPeng’s delivery and service center in Lørenskog, Norway, will open in February 2023.
- The first delivery and service center in the Netherlands will be in Badhoevedorp. It should be completed in February and is expected to open for business in Q2 of 2023.
- The center will also serve as a training facility for external technicians and XPeng staff, and it will operate as a spare parts hub in Schiphol, helping reduce the waiting time for EU customers needing repairs and replacements.
- XPeng’s center for Sweden will be in Stäket, Järfälla, and is expected to be completed by April and open by Q2 of 2023.
- Denmark’s delivery and service center will be in Hillerød and is planned to open in May 2023.
In addition to these locations, the automaker already shared intentions to open a number of authorized service locations through dedicated partners from each of the EU countries. Additional locations will open across Europe by the end of 2023.
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EV sales kept up their momentum in December 2024, with incentives playing a big role, according to the latest Cox Automotive’s Kelley Blue Book report.
December’s strong EV sales saw an average transaction price (ATP) of $55,544, which helped push the industry-wide ATP higher, according to Kelley Blue Book. The December ATP for an EV was higher year-over-year by 0.8%, slightly below the industry average, and higher month-over-month by 1.1%. Tesla ATPs were higher year-over-year by 10.5%.
Incentives for EVs remained elevated in December, although they were slightly lower month-over-month at 14.3% of ATP, down from 14.7% in November.
EV incentives were higher by an impressive 41% year-over-year and have been above 12% of ATP for six consecutive months. Strong sales incentives, which averaged more than $6,700 per sale in 2024, were one reason EV sales surpassed 1.3 million units last year, according to Cox Automotive, a new record for volume and share.
(My colleague Jameson Dow reported yesterday, “In 2024, the world sold 3.5 million more EVs than it did in the previous year … This increase is larger than the 3.2 million increase in EV sales from the previous year – meaning that EV sales aren’t just up, but that the rate of growth is itself increasing.”)
Kelley Blue Book estimated that in December, approximately 84,000 vehicles – or 5.6% of total sales – transacted at prices higher than $80,000 – the highest volume ever. KBB lumps gas cars and EVs together into this luxury vehicle category, so this is where Tesla Cybertruck is slotted.
However, Tesla bundles sales figures of Cybertruck with Model S, Model X, and Tesla Semi(!) into a category it calls “other models,” so we don’t know for sure exactly how many Cybertrucks Tesla sold in Q4, much less in December. However, Electrek‘s Fred Lambert estimates between 9,000 and 12,000 Cybertrucks were sold in Q4, and that’s not a stellar sales figure.
What will January bring when it comes to EV ATPs? What about tax credits? Check back in a month and I’ll fill you in.
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Tesla is now claiming that Cybertruck was the ‘best-selling electric pickup in US’ last year despite not even reporting the number of deliveries.
There’s a lot of context needed here.
As we often highlighted, Tesla is sadly one of, if not the most, opaque automakers regarding sales reports.
Tesla doesn’t break down sales per model or even region.
For comparison, here’s Ford’s Q4 2024 sales report compared to Tesla’s:
You could argue that Tesla has fewer models than Ford, and that’s true, but Tesla’s report literally has two lines despite having six different models.
There’s no reason not to offer a complete breakdown like all other automakers other than trying to make it hard to verify the health of each vehicle program.
This has been the case with the Cybertruck. Tesla is bundling its Cybertruck deliveries with Model S, Model X, and Tesla Semi deliveries.
Despite this lack of disclosure, Tesla has been able to claim that the Cybertruck has become “the best-selling electric pickup truck” in the US in 2024:
It very well might be true. Ford disclosed 33,510 F-150 Lightning truck deliveries in the US in 2024 while most estimates are putting Cybertruck deliveries at around 40,000 units.
Those are global deliveries, but Tesla only delivered the Cybertruck in the US, Canada, and Mexico in 2024, and most of the deliveries are believed to be in the US.
However, there’s essential context needed here, as we highlighted in our recent ‘Tesla Cybertruck sales are disastrous‘ article.
First off, Tesla had a backlog of over 1 million reservations for the Cybertruck that it has been building since 2019. This led many to believe Tesla already had years of demand baked in for the truck and that production would be the constraint.
However, based on estimates, again, because Tesla refuses to disclose the data, Cybertruck deliveries were either flat or down in Q4 versus Q3 despite Tesla introducing cheaper versions of the vehicle and ramping up production.
Again, that’s after just about 40,000 deliveries.
Furthermore, with almost 11,000 deliveries in Q4 in the US, Ford more likely than not outsold Cybertruck with the F-150 Lightning in Q4.
Electrek’s Take
Tesla is in damage control here. There’s no doubt that it is having issues selling the Cybertruck.
Inventory is full of Cybertrucks and Tesla is now discounting them and offering free lifetime Supercharging.
Tesla is great at ramping up production, and it’s clear the Cybertruck is not production-constrained anymore. It is demand-constrained despite having over 1 million reservations.
Again, those reservations were made before Tesla unveiled the production version, which happened to have less range and cost significantly more.
The upcoming cheaper single motor version should help with demand, but I have serious doubts Tesla can ramp this program up to more than 100,000 units in the US.
As a reminder, Tesla installed a production capacity of 250,000 units annually and Musk said he could see Tesla selling 500,000 Cybertrucks per year.
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