TLDRs;
- Xpeng recalls nearly 47,500 P7+ EVs in China due to steering assist defect traced to sensor wiring issues.
- More than 65% of all P7+ sales are affected, raising concerns about quality control during rapid expansion.
- Regulators tightened oversight after earlier reports suggested Xpeng tried to avoid a formal recall.
- Despite the setback, Xpeng continues with aggressive global expansion plans, including launching its Mona brand in Europe by 2026.
Chinese electric vehicle maker Xpeng is facing one of its biggest safety challenges yet, recalling nearly two-thirds of its P7+ sedan sales in China after regulators flagged a defect in the steering system.
The recall, announced by China’s State Administration for Market Regulation, affects 47,490 P7+ units manufactured between August 2024 and April 2025.
According to the agency, loose wire connections in the power steering assist sensors could lead to signal fluctuations, triggering a sudden failure of steering assist and activating warning lights.
This technical fault, though not linked to any publicized accidents so far, represents a significant portion, more than 65%, of total P7+ sales through the end of August 2025, based on data from ByteDance’s auto analytics unit Dcar.
Expansion Meets Quality Control Challenges
The P7+ sedan, launched in late 2024, was billed as a direct competitor to Tesla’s Model 3 with a price starting at 186,800 yuan (US$26,200). The model was a cornerstone of Xpeng’s strategy to gain market share in China’s increasingly crowded EV space.
In the first eight months of 2025 alone, Xpeng delivered 271,615 vehicles, more than tripling its year-on-year output. However, analysts suggest that the company’s rapid scale-up may have come at the expense of manufacturing precision.
“This isn’t an isolated hiccup but points to systemic gaps in quality control during rapid growth,” one industry expert noted.
Such patterns are not uncommon in the auto industry, where companies expanding production at breakneck speed often face higher risks of technical faults slipping through.
Regulators Tighten Grip on EV Safety
The recall comes amid growing scrutiny of Chinese automakers by regulators determined to enforce stricter compliance standards. Reports earlier this year alleged that Xpeng initially attempted to address steering issues informally by applying sealant during maintenance visits rather than issuing a formal recall.
That strategy, according to critics, raised questions about whether EV startups were attempting to sidestep official oversight in the race to dominate market share. The regulator’s intervention signals a firmer stance on transparency and accountability.
Despite the large recall, financial analysts downplayed the long-term impact on Xpeng. Morgan Stanley said the costs would likely be “manageable,” framing the episode as a regulatory compliance expense rather than a fundamental threat to the automaker’s financial health.
Looking Beyond China’s Borders
While managing the recall at home, Xpeng is also pushing forward with ambitious global plans. The company recently confirmed that it will launch its budget Mona EV brand in Europe by 2026, seeking to carve out space in international markets despite rising trade barriers, including EU tariffs on Chinese-made vehicles.
CEO He Xiaopeng has hinted at potential manufacturing facilities in Europe and acquisitions of rival EV developers, underscoring the company’s determination to expand aggressively despite domestic setbacks.
Industry observers say the steering defect episode could serve as a wake-up call for the automaker. Balancing global expansion with robust quality control will be crucial if Xpeng hopes to avoid similar missteps abroad, where safety recalls can carry heavier reputational costs.
