XPeng Motors Violated Shanghai’s New Energy Policy

Recently, some netizens posted on Chinese social media platforms that the new energy quota approval for XPeng‘s P7 and P5 models has been stopped since July, due to its violation of Shanghai New Energy Office’s policies. Specific resumption times have yet to be determined.

According to the screenshots posted online, in the column of “Application for Special License for New Energy Vehicles in Shanghai”, the result shows “failed”, because “the manufacturer violated the Implementation Measures of Shanghai on Encouraging the Purchase and Use of New Energy Vehicles”.

Some netizens speculated that XPeng violated the regulations because the company received owners’ money in advance to invoice. The New Energy Office stipulated that the invoice must be issued through the quota about which XPeng was warned many times last year but ignored. “This punishment was said to last for a long time, no less than 3 months.”  Some users also said that it did not affect a certain model, but the whole brand.

This June, Shanghai issued a Notice on the Relevant Operational Procedures of the Implementation Measures for Encouraging the Purchase and Use of New Energy Vehicles in 2022, which mentioned that new energy vehicle manufacturers must apply for confirmation certificates for consumers who are qualified through the management system after the vehicle registration is completed. The Shanghai Economic Information Commission reviews the information submitted by manufacturers and issues certificates through its management system. The process includes three links: reviewing vehicle information, confirming charging conditions and issuing confirmation certificates.

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For manufacturers who fail to implement the process accordingly and issue sales invoices to users before obtaining confirmation certificates, the Economic Information Commission shall order them to make rectification within a certain amount of time. During the rectification period, the companies shall suspend the issuance of confirmation certificates and the application for financial subsidies, and resume relevant policy support once they complete the rectification and meet the requirements.

In addition, as early as the beginning of this month, some Shanghai residents have said that the XPeng cars they ordered could not apply for new energy licenses for the time being. In this regard, Cailian Press reported on August 23 that this was due to the recent relocation of XPeng‘s Shanghai service center, and the relevant information was not uploaded to the system in time, which led to the failure of approval of some customers’ quota orders, and now it has been fully restored.