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Xpeng reports wider losses for third quarter, forecasts sharp decline in sales ahead
- Xpeng expects a sharp decline in new car deliveries in the fourth quarter
- EV firm expects ‘a recovery in the first quarter of next year’, president says
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Daniel Renin Shanghai
Xpeng Motors expects a sharp decline in new car deliveries in the fourth quarter, the Chinese smart electric vehicle (EV) maker said on Wednesday.
A strained supply chain continued to be a stumbling block to sales growth, said the carmaker as it posted a net loss of 3.28 billion yuan (US$335.8 million) for the third quarter. Its losses for this period widened by 49.7 per cent from the 1.59 billion yuan it posted for the same period a year ago.
When compared with the previous quarter, its losses narrowed 12 per cent from 2.7 billion yuan. Its net loss in the third quarter fell short of a median forecast of 1.8 billion yuan made by analysts polled by Bloomberg.
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“We had a supply-chain issue to sort out and it deterred us from building and delivering enough G9 vehicles to our customers,” Brian Gu, president of the Guangzhou-based carmaker, told the Post after its quarterly earnings were released. “But we are on track to solving the problem and expect to see a recovery in the first quarter of next year.”
02:18
Chinese XPeng electric car can drive and park by itself
Chinese XPeng electric car can drive and park by itself
Improved operational efficiency, new products and technology roll-outs will turn Xpeng around soon, Gu added.
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The forecast of reduced deliveries comes as Beijing’s stringent coronavirus controls continue to wreak havoc on Chinese carmakers, which face a severe shortage of key components.
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