Xpeng cuts down on losses in Q1

The Chinese electric car manufacturer and VW partner Xpeng has reported increased vehicle deliveries and sales as well as a reduction in its losses for the first quarter. Xpeng was able to achieve a noticeable increase in turnover in particular.

Xpeng delivered a total of 21,821 electric cars from January to March, 19.7 per cent more than in the same period last year. Total sales in the first quarter of 2024 amounted to 6.55 billion yuan (837 million euros), an increase of 62.3 per cent compared to the same period in 2023.

However, Xpeng was unable to match the development at the end of 2023 – in Q4 2023, more than 60,000 vehicles were delivered and a turnover of 13.05 billion yuan was achieved. In other words: compared to Q4, turnover in the first quarter fell by 49.8 per cent. However, vehicle deliveries in China are generally highly seasonal, and the Chinese New Year celebrations, which last several days, fall in the first quarter.

The net loss totalled RMB 1.37 billion (EUR 175 million) in the first quarter of 2024, compared to RMB 2.34 billion in the same period of 2023 and RMB 1.35 billion in the fourth quarter of 2023.

Xpeng did not break down the 21,821 deliveries by individual markets. It is therefore unclear how many vehicles went to Chinese customers and how many were exported. The only thing that is clear is that although the Q1 result from 2023 was exceeded, the second quarter of 2023 was already better than the Q1 result for 2024 with 23,205 units. Xpeng appears to be a long way from the 100,000 units in the second half of 2023 in the first half of 2024. Deliveries from April (9,393 vehicles) indicate an improvement, but not strong enough to reach six-digit sales in the first half of the year.

Xpeng intends to further stem the ongoing losses by scaling up its production and spreading its AI-based technologies. “We are confident that we can launch competitive models globally in a more efficient manner and thus spearhead the widespread adoption of AI-powered smart cars,” said Xiaopeng He, Chairman and CEO of the company. “Through our strategic partnership with the Volkswagen Group, XPENG is at the forefront of monetizing in-house developed smart technologies as a technology enabler. Our industry-leading technologies are expected to gain greater market influence and yield better financial returns.”

xiaopeng.com