Chinese EV Manufacturer Xpeng Anticipates a Minimum 35% Surge in Sales, Citing Technological Investments
Xpeng anticipates a 35% to 49% increase in sales for the third quarter. The company reported a 6.6% reduction in net loss compared to the previous quarter. Xpeng's revenue rose by 23.8% quarter on quarter.
The CEO highlighted that their prior investments in technology are yielding positive results, especially with the growing interest in self-driving capabilities and digital interfaces.
In their quarterly earnings report released on Tuesday, the Guangzhou-based company projected total sales to range between 41,000 and 45,000 units for the third quarter. This estimate represents a substantial surge of 35.7% to 49% compared to the previous quarter, during which they delivered 30,207 vehicles globally.
Despite reporting a net loss of 1.28 billion yuan (US$179.2 million) for the second quarter, Xpeng managed to narrow the loss by 6.6% from the first quarter. This performance exceeded the expectations of analysts surveyed by Bloomberg, who had predicted a larger loss of 1.63 billion yuan.
Moreover, Xpeng's revenue climbed by 23.8% quarter on quarter to 8.1 billion yuan, indicating a positive trajectory for the company. CEO He Xiaopeng expressed optimism about the future, stating, “We are about to enter into a strong product cycle. In the next three years, we will have a large number of new models and facelift versions in the pipeline for market launch.”
The company's strategic focus on product development, enhanced marketing strategies, and technological advancements, particularly in artificial intelligence, are expected to drive sales growth both in China and international markets.
Xpeng, established in 2014, is renowned for its autonomous driving technology, positioning itself as a competitor to Tesla's Full Self-Driving (FSD) software. Recently, Xpeng expanded the use of its self-driving system across all cities in China to attract more local users in anticipation of the FSD launch in the country by the year-end.
The latest iteration of Xpeng's navigation guided pilot (X NGP) is set to revolutionise self-driving technologies in China, enabling vehicles to perform various functions autonomously, such as recognising traffic lights, changing lanes, and overtaking other vehicles. However, drivers are still required to maintain control and intervene when necessary.
In response to Tesla's dominance in China's premium EV sector, Xpeng, along with Nio and Li Auto, is considered a strong contender. These companies offer vehicles equipped with autonomous driving features, digital cockpits, and high-performance batteries, catering to the preferences of tech-savvy Chinese consumers.
Xpeng anticipates a 35% to 49% increase in sales for the third quarter.
The company reported a 6.6% reduction in net loss compared to the previous quarter.
Xpeng's revenue rose by 23.8% quarter on quarter.
Source: SCMP