Chinese electric vehicle (EV) company Xpeng Motors (NYSE: XPEV) has initiated a recall of 47,490 P7+ electric sedans, a move that is considered rare for a domestic EV maker in recent years. The recall, which officially begins on September 15, addresses a potential safety hazard related to the vehicle’s power steering system.
According to an announcement on the website of China’s State Administration for Market Regulation (SAMR), the recall affects P7+ models produced between August 20, 2024, and April 27, 2025. The core issue lies with a poor contact in the power steering motor sensor wiring harness. This flaw can lead to fluctuating steering sensor signals, which may cause the steering malfunction warning light to illuminate and, in a worst-case scenario, result in a complete loss of steering assist.
The recall comes after a period of mounting criticism and consumer complaints. Chinese state media outlets, including Xinhua News Agency’s Economic Information Daily, had previously reported on allegations that Xpeng was attempting to address the issue through unofficial “secret fixes” rather than a formal recall. These alleged practices, which included applying sealant to steering components or selectively replacing parts for the most vocal customers, drew strong consumer backlash and raised questions about the company’s commitment to safety and regulatory compliance.
Xpeng has stated that it will replace the affected steering assembly with an improved version free of charge for all vehicles within the recall scope. The company will notify affected owners through its mobile app, telephone calls, and other methods.
The P7+ model has been a key contributor to Xpeng’s recent sales success, accounting for over 20% of its total deliveries from January to August of this year. In the first eight months of 2025, its EV deliveries rose to 271,615, 252% higher than the corresponding period in the previous year. By the end of August, the cumulative deliveries had reached 862,016.
While the recall represents a significant logistical and financial undertaking, Morgan Stanley believes the impact on the company’s overall business would be “manageable” and still expects the company to meet its guidance of achieving breakeven on the net profit level by the end of this year.
The recall serves as a crucial test for Xpeng’s reputation and its relationship with consumers. The company’s transparency and efficiency in handling the fix will be closely watched by both customers and the wider EV industry, which is facing intense competition and increasing regulatory scrutiny in China. By addressing the safety concern directly and publicly, Xpeng has an opportunity to rebuild trust and demonstrate its commitment to product quality, which is essential for its long-term growth and success in the competitive EV market.
Notably, the recall comes a few days after Xpeng Motors CEO, He Xiaopeng, said that the company plans to launch its mass market Mona brand outside the Chinese market in 2026.
Speaking with CNBC, He said, “In 2026 you can expect a variety of Mona products launched into the Chinese and European markets, as well as in rest of the world.”
The Xpeng CEO added, “I believe by then, what we launch will be very proven and very excellent vehicles.”
Xpeng Motors launched the Mona M03 model in China last year, and it has been a major success story, helping propel its deliveries. Riding the success of its new models, including Mona M03, Xpeng Motors achieved a new monthly record, delivering 37,709 vehicles in August. This represents a staggering 169% year-on-year increase and a 3% rise from the previous month.
Xpeng Motors plans to expand its presence in 60 countries by the end of 2025, a goal He said the company has already met. Notably, Chinese EV companies have been able to expand globally despite facing tariffs in several countries. Europe is a case in point here, and despite the E.U. tariffs, Chinese EV companies now outsell Tesla, which has been present in that market for much longer and even has a Gigafactory in Germany.
Tesla’s sales have been falling sharply in Europe in recent months as many buyers have shunned Tesla vehicles due to CEO Elon Musk’s political activities, in particular his support for far-right politicians pretty much across the world, including in Europe.
Meanwhile, Xpeng Motors has touted the possibility of acquiring other EV companies, and in the CNBC interview, He said, “I think if we have the opportunity, then we want to acquire some companies.” He added, “For us it’s a good thing to do. Manufacturing companies, EV companies are always possible.”
Notably, given the EV industry turmoil, several companies have gone bankrupt. However, many of them have manufacturing assets that can be utilized by other automakers. For instance, Lucid Motors acquired some assets from Nikola that went bankrupt amid burgeoning cash burn.
Xpeng Motors is believed to have among the most advanced autonomous driving capabilities among Chinese EV companies. The company’s focus on its XNGP advanced driver-assistance system is gaining traction, achieving an 85% monthly active user penetration rate in urban driving.
In 2023, Volkswagen invested in Xpeng Motors, and as part of the agreement, XPEV will build two EVs on its platform. The deal was a milestone for the Chinese EV ecosystem as it reflected the confidence of Volkswagen in a startup EV company. It was also a testimony to Xpeng Motor’s self-driving capabilities, which the company intends to build upon further. The two companies have since expanded their partnership and, among others, are building a charging network in China.
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