Xpeng Under Fire for Secret Repairs to Dodge Recall for Defective EVs

Tesla rival Xpeng is facing backlash for allegedly hiding EV defects by secretly replacing faulty parts without issuing an official recall. The Chinese EV manufacturer has been criticized for quietly replacing defective parts in its P7+ electric vehicles without initiating an official recall, despite complaints of sudden steering system failures. Xpeng denies a systemic defect, but owners have expressed concerns, and the issue has led to unexpected steering wheel movements. This controversy arises at a time when China's authorities have announced plans to strengthen oversight of over-the-air updates in smart vehicles.

Xpeng Motors, a leading electric vehicle (EV) manufacturer in China, is facing mounting criticism and consumer backlash over its handling of potentially dangerous steering system failures in its P7+ electric vehicles. According to Economic Information Daily, a newspaper under China’s Xinhua news agency, the Chinese EV maker has been accused of secretly replacing defective parts while avoiding an official recall [2].

The issue centers around the power steering system in Xpeng P7+ vehicles, which owners report can suddenly fail or completely lock up while driving. Despite numerous complaints and evidence of a widespread problem, Xpeng has reportedly refused to acknowledge a systemic defect or initiate a recall. An investigation by Economic Information Daily revealed that Xpeng appears to be employing a controversial dual strategy: secretly applying sealant to steering components during routine maintenance and selectively replacing steering systems for the most vocal complainants, all while denying that any widespread defect exists [2].

One owner reported that their replacement unit failed just two weeks after installation, raising questions about the effectiveness of Xpeng’s repair strategy. The situation has grown more concerning as even vehicles with newly replaced steering systems have experienced failures, creating potentially hazardous driving conditions [2].

When confronted by owners at its Guangzhou headquarters, Xpeng customer manager Lei Changliang deflected responsibility, stating that recall procedures are determined in consultation with regulatory authorities and claiming that service centers, not headquarters, handle maintenance issues [2]. Industry experts suggest that Xpeng’s approach may represent a deliberate attempt to circumvent China’s recall regulations by gradually replacing defective parts on a case-by-case basis rather than issuing a comprehensive recall [2].

This controversy comes at a challenging time for regulators, as China’s authorities have recently announced plans to strengthen oversight of over-the-air updates in smart vehicles. Xpeng’s “Xinghe” system has reportedly received nine major OTA updates in less than nine months, raising questions about whether all these updates were properly registered with regulatory authorities [2].

Xpeng’s handling of the steering system issue is a significant challenge for the company, which has been gaining momentum in the EV market through its AI-driven technology and strategic expansion. The company secured a RMB 10 billion credit facility from CITIC Bank in Q2 2025 to boost operational resilience, international expansion, and AI-driven tech development [1]. Despite this, the allegations of defective parts replacement without a recall could potentially damage the company’s reputation and trust with consumers.

For investors, the controversy adds a layer of uncertainty to Xpeng’s otherwise promising trajectory. The company’s financial strength, as evidenced by its RMB 45.28 billion cash reserves and 15.6% Q1 2025 gross margin, positions it well to navigate such challenges [1]. However, the long-term impact of the current controversy on Xpeng’s operations and market perception remains to be seen.

References:
[1] https://www.ainvest.com/news/xpeng-strategic-financing-expansion-momentum-2025-high-growth-ev-investment-opportunity-2508/
[2] https://carnewschina.com/2025/08/21/xpeng-reportedly-accused-of-secretly-replacing-defective-parts-while-avoiding-official-recall/