China EV war: Xpeng expects sales to rev up as it snaps at Tesla’s heels on the mainland
- Guangzhou-based carmaker expects to deliver between 24,362 and 26,362 vehicles in the final two months of the year
- EV start-up, however, reports mounting losses in the third quarter to US$248.8 million, up from US$180 million a year ago
The Guangzhou-based carmaker backed by e-commerce giant Alibaba Group Holding, which also owns the South China Morning Post, and smartphone maker Xiaomi, said in its earnings report that it would deliver between 24,362 and 26,362 vehicles in November and December, following strong sales in the previous two months.
Net loss in the third quarter widened to 1.59 billion yuan (US$248.8 million), from 1.15 billion yuan a year ago because of higher marketing costs, the carmaker said.
“It will be interesting to watch if a domestic carmaker can truly become a Tesla rival in terms of sales,” said Eric Han, a senior manager with Shanghai-based business advisory Suolei. “Then the competition for a leading position in China’s smart EV market will escalate.”
Xpeng, along with Shanghai-based NIO and Beijing-headquartered Li Auto, are dubbed the three Chinese challengers to Tesla. They all develop intelligent EVs with advanced driver assistance systems, sophisticated in-car entertainment systems and high-performance batteries that ensure long driving range on a single charge.