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This new electric SUV from China could shake up Tesla Model Y’s dominance with its surprising price

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  • Starting at roughly $34,000, this positions itself as a direct challenger to the Model Y while undercutting it on price.
  • The question becomes whether will build the G7 locally to avoid those extra charges – a strategy other are considering.
  • The cabin design mirrors what we’ve seen in the , centered around a large 15-inch touchscreen that handles most vehicle functions.

The just dropped its pricing in China, and the numbers might make nervous. Starting at roughly $34,000, this electric positions itself as a direct challenger to the Model Y while undercutting it on price. But here’s the catch – that attractive sticker price won’t translate directly to American showrooms.

A fresh face in the crowded electric SUV market

Xpeng unveiled the G7 earlier this year, and it’s already generating buzz. The , which currently sells the G6 and G9 SUVs in select markets, designed this latest model to sit right between its existing offerings. Think of it as their Goldilocks SUV – not too big, not too small, but sized just right to take on Tesla’s best-seller.

The G7 measures about 16 feet long, 6.3 feet wide, and 5.4 feet tall. Those dimensions put it squarely in Model Y territory, which makes sense given Xpeng’s obvious target. The styling borrows heavily from their P7+ sedan concept that turned heads at recent auto shows, giving it a sleeker profile than your typical boxy SUV.

Pricing that could disrupt the market

Here’s where things get interesting. In China, the G7 starts at around 250,000 yuan, which converts to approximately $34,000. Compare that to the Tesla Model Y’s Chinese pricing of 263,500 yuan (about $36,500), and you can see why this matters.

But don’t expect those same prices if the G7 makes it to America. Trade policies and import duties would likely push the cost up significantly. The question becomes whether Xpeng will build the G7 locally to avoid those extra charges – a strategy other Chinese automakers are considering.

You know how this game works: what looks like a bargain in one market rarely stays that cheap when it crosses oceans.

Two battery options, both promising solid range

Xpeng isn’t giving away all the technical details yet, but we’ve learned enough to paint a clear picture. The base G7 comes with a 68.5 kWh LFP battery paired with a single motor producing 292 horsepower. That setup should deliver around 317 miles of range on the EPA cycle (though Xpeng quotes higher numbers using China’s more optimistic testing standards).

Want more range? The extended-range version bumps up to an 80.8 kWh battery while keeping the same 292-horsepower motor. This variant should hit approximately 373 miles of range, putting it in respectable territory against established competitors.

The company hasn’t revealed charging speeds yet, which seems like an oversight in today’s fast-charging world. Modern electric SUV buyers want to know they can add meaningful range during a coffee break, not just overnight in their garage.

Interior design follows the minimalist playbook

Step inside the G7, and you’ll find yourself in familiar territory if you’ve been in any modern lately. The cabin design mirrors what we’ve seen in the G6, centered around a large 15-inch touchscreen that handles most vehicle functions.

It’s the Tesla approach, basically – strip away physical buttons and put everything on the screen. Love it or hate it, that’s become the industry standard. The G7 should seat five adults comfortably thanks to its 9.5-foot wheelbase, though rear passenger space often depends more on seat design than raw measurements.

The dashboard layout emphasizes clean lines and digital interfaces, which either looks refreshingly modern or sterile depending on your taste. (Personally, I miss having a few actual knobs for climate control, but apparently that makes me old-fashioned.)

The bigger question: will it reach American driveways?

Xpeng’s track record suggests they’re serious about global expansion, but the American market presents unique challenges. Beyond pricing pressures from import duties, Chinese automakers face skepticism from American buyers who prioritize brand familiarity and dealer networks.

The G7’s success won’t just depend on competitive specs or attractive pricing. It needs to prove itself reliable, offer decent customer service, and convince buyers that choosing a relatively unknown brand over Tesla makes sense.

That’s a tough sell, even with a lower price tag. American car buyers can be surprisingly conservative when it comes to trying new brands, especially for big-ticket purchases like electric SUVs.

Still, the electric vehicle landscape keeps evolving rapidly. What seemed impossible five years ago – serious Tesla competition – now looks inevitable. The G7 might not revolutionize anything overnight, but it represents another step toward a more competitive and diverse electric SUV market.

And frankly, that competition benefits everyone who wants better, more affordable .

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