XPeng G6 software strategy aims to protect EV resale values
Chinese EV brand says continual OTA software updates will help keep used cars desirableThe News
XPeng believes its over-the-air (OTA) software strategy could help shield its electric vehicles from one of the biggest concerns facing EV buyers – steep depreciation – by keeping older vehicles technologically current for longer.
The Key Details
- XPeng says continual OTA updates can improve long-term resale appeal
- Older vehicles receive the same software as newly launched models
- Brand compares its ownership experience to smartphone-style updates
- Executives believe owners will upgrade when they choose, not because they have to
The Finer Details
According to XPeng Australia senior marketing and comms manager Terry Zhang, the company's focus is on delivering continual software improvements rather than forcing customers into frequent hardware or new vehicle upgrades.
XPeng is clearly prioritising dynamic digital enhancement over frequent hardware overhauls, similar to how Tesla has been operating.
So instead of leaving earlier vehicles behind when new models arrive, XPeng says it uses OTA software updates to ensure existing owners continue receiving the latest digital features wherever possible.
"For XPeng, we're using the OTA upgrade to make the car – even the older models – enjoy the same software as the newer models," said Zhang.
"For example, we had a first-generation [XPeng] G6 launch probably 18 months ago… and even today, they are receiving the same software updates with the [upgraded] model we just launched last week," he added.
The strategy is designed to tackle one of the biggest pain points in today's EV market: depreciation driven by rapid technological change rather than mechanical wear.
XPeng Australia head of marketing Damian Royce believes keeping vehicles current through software updates should make them more attractive on the used market.
"We would think that because the car is – through its software and through its driving and ownership experience – still current, so we would think that that helps with resale," said Royce.
"There's still something for the next person. It's not a five-year or a 10-year-old car. The paint and panels are five or 10 years old, but the car is still improving.
"It's still updating. It's still current. It’s still relevant."
Royce said the approach could also change how customers think about replacing their vehicles, allowing owners to decide when they're ready for a new model instead of feeling pressured by major generational changes.
"It becomes their choice whether they want to upgrade to the new model.
"That might get some people over the line [to buy the next model] whereas others might say, 'I'm happy with what I've got because it's still improving. It's still up to date',” said Royce.
The Road Ahead
As software increasingly becomes a key differentiator between electric vehicles, XPeng is betting that continual OTA updates can slow the perception of ageing and strengthen resale values.
It’s hoping to build longer-term customer loyalty in much the same way regular software updates have become expected in the smartphone market.
The brand is also looking to launch several new models in Australia in 2026 and beyond and hopes to have a rival to Tesla’s FSD or full self-driving technology available to Aussie drivers in the coming years.
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