Shanghai was the fourth-largest city for Xpeng P7 sales in the first half of the year, and the second-largest city for Xpeng P5 and G3 series sales.

(An Xpeng P7 on display at a mall in Shanghai. Image credit: CnEVPost)

Consumers who purchased Xpeng Motors' models including the P7 and P5 are currently unable to obtain exclusive license plates for new energy vehicles (NEVs) in Shanghai, as the electric vehicle (EV) maker violated local policies, according to a report by Yiche today.

As background, Shanghai is currently offering free exclusive license plates to consumers who purchase NEVs, including pure electric vehicles and plug-in hybrids.

For consumers who buy an internal combustion engine vehicle, they will need to spend about RMB 100,000 beforehand in a bidding system to obtain a license plate.

The problem faced by Xpeng consumers in Shanghai arose in July and it's unclear when it will be resolved, the Yiche report said.

A screenshot from Yiche's report shows that consumers were rejected from Shanghai's NEV license application system because "the manufacturer violated the city's implementation measures to encourage the purchase and use of NEVs".

(Image credit: Yiche)

This was caused by Xpeng collecting the purchase payment in advance and issuing invoices, the report said, citing some Internet users. Shanghai authorities require that car companies issue invoices only after a consumer's application for a NEV license plate has been approved.

Xpeng was warned several times last year but ignored, Yiche's report said, adding that registration of the company's entire lineup in Shanghai may have to be suspended for at least three months.

Ten days ago, some Shanghai residents said they were unable to obtain local NEV license plates for the Xpeng vehicles they had purchased.

Xpeng's customer service said at the time that the problem had been occurring for some time because the relevant documents had not been submitted yet, according to a report by local media outlet The Paper on August 12.

If these rumors are true, then Xpeng's deliveries in Shanghai could be affected this month.

Xpeng is headquartered in Guangzhou, Guangdong province in southern China, and Shanghai, one of the most developed cities in China, is a key market for the company.

Xpeng currently sells the Xpeng P7 and Xpeng P5 sedans, as well as the Xpeng G3 series SUVs.

Xpeng P7 retail sales in the first half of the year were 35,216 units, with Shanghai contributing 1,945 units, making it the fourth largest market for the model, according to data shared by local automotive media Gasgoo on July 27.

Xpeng P5 sold 23,252 units in the first half of the year, with Shanghai ranking second with 1,408 units. Xpeng G3 series sold 10,449 units in the first half of the year, with Shanghai ranking second with 878 units.

Factbox: Which cities are XPeng's vehicles sold to?