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Xpeng forecasts big jump in third-quarter deliveries

Updated: Jan 8

Xpeng, a Chinese electric vehicle (EV) maker, has predicted a significant increase in deliveries during the third quarter of this year, supported by its new G6 model which has semi-autonomous driving abilities.

Xpeng
Credits: Weibo

The Guangzhou-based automaker said in its second-quarter earnings report last Friday that total deliveries to mainland Chinese customers are likely to be 39,000 to 41,000 electric vehicles between July and September, up 68 to 76.7 percent from the previous quarter.


The positive forecasts came after Xpeng reported a 19.7 percent widening of its net loss in the second quarter to 2.8 billion yuan (US$384 million) from 2.34 billion yuan in the three months to 31 March. The company cited inventory write-downs, increased sales promotions and the expiration of Chinese EV subsidies as negative factors. However, revenue beat estimates at 5.06 billion yuan, up 25.5 percent quarter-on-quarter.


"Xpeng G6, our first strategic model built on SEPA 2.0 [architecture], has quickly become one of the bestselling models following its official launch in June, turbocharging our sales growth momentum," He Xiaopeng, co-founder and CEO of Xpeng, said. "We have created meaningful breakthroughs in commercialising our industry-leading full-stack EV platform and smart technologies, both developed in-house."


The G6 is the first model developed under Xpeng's new SEPA 2.0 technology platform. Founder He said in April the platform was expected to shorten the automaker's development cycle by a fifth.


Xpeng, Shanghai-based Nio and Beijing-headquartered Li Auto are seen as China's main challengers to US EV maker Tesla, as they design and assemble premium electric cars with preliminary autonomous driving technology and an intelligent cockpit system.


The G6 has limited autonomous driving ability and can navigate the streets of leading Chinese cities like Beijing and Shanghai using Xpeng's X NGP (Navigation Guided Pilot) software, similar to Tesla's Full Self-Driving (FSD) system which is not approved in China.

 
  • Xpeng forecasts 68-76% jump in Q3 deliveries to 39,000-41,000 vehicles

  • Revenue beat estimates despite wider net loss in Q2

  • New G6 model with semi-autonomous tech driving growth

Source: SCMP

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