XPeng launched G7 premium electric SUV featuring self-developed Turing chips, targeting mid-high market with competitive pricing against rivals like Model Y and YU7.
Last night, the XPeng G7 officially launched with a price range of 195,800 to 225,800 yuan ($27,000 – $31,100).
This is XPeng’s first model equipped with its self-developed Turing chip. It is also XPeng’s third newly named model following the M03 and P7+.
A core mission for XPeng in 2025 is to return to the above 200,000 yuan ($27,600) segment. The previously updated 2025 G9 and X9, combined with last night’s G7, form XPeng’s mid-to-high-end pure electric family product line.
The top-tier price of 225,800 yuan ($31,100) strategically positions it against popular models like the Tesla Model Y and Xiaomi YU7. On the other hand, another hot-selling pure electric SUV in the 200,000 yuan ($27,600) range – the Onvo L60 – happens to overlap significantly with the G7.
After the launch event, XPeng officially posted on Weibo, stating that the G7 received over 10,000 pre-orders (with non-refundable deposits) within 9 minutes.
Following the hot sales of the Xiaomi YU7, the competition over pre-order numbers seemed to have subsided. XPeng CEO He Xiaopeng himself commented that the YU7 created a “myth” for Chinese cars, but then quickly added that the “G7 isn’t selling badly either.”
Will the speed of pre-orders translate into reality? What advanced information is there about the Turing chip? How will XPeng navigate 2025 after the G7?
Today, we briefly discuss these topics based on a group interview with He Xiaopeng and G7 product lead, Nick.
About Sales
“YU7 created a myth. I genuinely feel it did.”
Every new energy SUV in the 200,000 yuan ($27,600) class launched this year inevitably gets compared to the Xiaomi YU7, and He Xiaopeng’s G7 is no exception.
He Xiaopeng said he asked XPeng’s sales team how many pre-orders the G7 received in 3 minutes, and the team told him it was also very good, suggesting they could promote it.
However, thinking about the YU7’s 200,000 pre-orders in 3 minutes, He Xiaopeng felt “it seems no matter how we promote it, it wouldn’t measure up.”
Selling an SUV starting at 253,500 yuan ($35,000) with such order volume, he believes Lei Jun and Xiaomi “not only created a product with extremely strong capabilities, but also one with exceptionally long ‘longboards’ (strengths).”
Returning to the G7, he believes it was built on a similar philosophy – “not only has no shortcomings, but also has very long longboards.”
The top-tier G7 702 Ultra is priced at 225,800 yuan ($31,100), nearly 28,000 yuan ($3,862) less than the starting price of the YU7. Strictly speaking, the G7 and YU7 are products with different sizes, positioning, and target customer groups that shouldn’t overlap much.
But the G7 has its own battle to fight.
Monthly sales of domestic pure electric SUVs in the 200,000-250,000 yuan ($27,586–$34,483) range have not yet surpassed 10,000 units. For example, the Onvo L60 delivered 6,400 units in June, and the Zeekr 7X sold 4,651 units in May.
He Xiaopeng has emphasized multiple times that neither he nor his team will answer questions about sales targets or expectations. However, from the officially released data, we can see some trends.
On November 7, 2024, the XPeng P7+ launched. The official Weibo poster at the time stated “over 10,000 pre-orders in 12 minutes.”
Compared to the P7+, the more expensive G7 achieved the same pre-order milestone even faster.
About the 602 Version
During the G7 pre-sale launch, He Xiaopeng said it would be “standard across the range with 702km range.”
However, upon actual market launch, the G7 added a 602km Max version, corresponding to the 68.5kWh LFP battery capacity listed in the MIIT filing.
Nick stated that the decision to offer the 602 version was based on “pre-order customer surveys.” Respondents expressed a desire for a more affordable version while still enjoying all the G7’s core capabilities.
The 602km Max version is officially priced at 195,800 yuan ($27,000) and shares the exact same launch benefits as the 702 Max/Ultra versions.
However, both He Xiaopeng and Nick stated that the Ultra version has higher order volume: “Pre-order user surveys showed over 80% preferred the Ultra,” and “We believe Ultra can steadily account for over 60% of orders.”
About the Turing Chip
The 20,000 yuan ($2,759) price difference between the G7 Max and Ultra versions, besides the 4G vs. 5G BOX distinction, mainly lies in the three Turing chips.
Based on the form factor shown by He Xiaopeng during the launch, the three Turing chips are independent – one shares the board with the 8295, while the other two each have their own small board.
During the group interview, He Xiaopeng indicated that one of these small-board Turing chips needs to be installed post-delivery at a service center: “The installation time will be very short, and we’ll have the capacity to install several thousand units per month.”
According to He Xiaopeng’s earlier remarks during the pre-sale launch, one of the three Turing chips is for the cockpit domain. This likely means that before the post-delivery installation, the intelligent driving domain (powered by dual Turing chips) will only have one chip active. The VLA-OL (representing the “cerebellum” assisted driving function) structurally requires dual-chip collaboration.
The reason for not equipping all three chips upfront is likely a mismatch between the G7’s expected sales volume and Turing chip production capacity.
However, the domain controller circuit board design phase happens very early. He Xiaopeng also mentioned it was “designed during early development,” suggesting either that Turing’s capacity constraints were anticipated earlier, or that Turing will be deployed consecutively in a series of upcoming models.
He Xiaopeng specifically highlighted: “In the future, XPeng’s Max models will have versions with dual Orin-X, and also versions with a single Turing chip.”
A single Turing chip offers roughly 750 TOPS of computing power – not only 50% higher than dual Orin-X but also with significantly higher memory bandwidth, and avoids the physical latency inherent in dual-chip interconnect.
Given XPeng’s current strategy of starting all models with the Max trim and monthly deliveries exceeding 35,000 units, the demand for Turing chips will grow substantially.
About XPeng’s 2025
XPeng’s label is intelligence. As a leader in intelligent assisted driving, XPeng absolutely cannot, and must not, relinquish its position.
He Xiaopeng stated that at the next launch event in the second half of the year, XPeng’s AES (Automatic Emergency Steering) capabilities will “amaze everyone,” and they will “fight a very beautiful battle in AEB (Automatic Emergency Braking).”
Besides prioritizing intelligence, delivery volume is also paramount.
After the G7 launch, XPeng urgently needs to prove its ability to achieve monthly deliveries of 40,000, 50,000, or even higher. Leapmotor delivered over 48,000 units in June, while BYD exceeded 380,000.
However, compared to competitors, He Xiaopeng emphasized that XPeng has never considered itself to be “on a cost-performance route.”
Nick added that, for instance, the G6 is positioned as “Practical Tech,” the G7 as “Middle-Class Tech,” and the G9 as “Premium Experience.”
After the G7 launch, and including the imminent new P7, XPeng will have six models on sale this year. As XPeng grows stronger, it needs to face the profitability challenge within this increasingly complex system.
He Xiaopeng stated that the G7’s operational capability will be very good, implying cost control. He further indicated that the G7’s pricing already accounts for the possibility of Model Y undergoing “dynamic MSRP (Manufacturer’s Suggested Retail Price) adjustments.”
Ultimately, all delivery volumes translate into numbers on financial reports.
In Q1 this year, XPeng reported a net loss of 660 million yuan ($91 million), narrowing by nearly half compared to Q4 last year.
He Xiaopeng stated that the Q2 financial report will also be very good – although, excluding technology licensing fees from Volkswagen, XPeng’s net loss as an automaker itself would be slightly larger.
Nevertheless, he remains confident in the target of achieving profitability in Q4. He believes XPeng has undergone a “phoenix-like” transformation and growth over the past three years.
Finally, he concluded, “By Q4 this year, everyone will see XPeng enter a period of rapid development.”
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