Chinese EV maker Xpeng expects to sell 30 per cent more cars after reporting big jump in second-quarter sales

Name: Chinese XPeng electric car can drive and park by itself
Uploaded: 2021-08-26T13:50:41.000Z
Duration: 2 min 18 s
Description: Chinese XPeng electric car can drive and park by itself

Company targeting delivery of between 21,500 and 22,500 EVs in third quarter, or 23.6 per cent to 29.3 per cent higher than number for three months ending June

‘Given our high-growth potential, chip companies will treat us as a VIP client, which gives us an advantage ahead of other car firms’

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Xpeng’s second-quarter sales were slightly ahead of an analysts’ forecast, according to financial data company Factset. Photo: Handout

Daniel Ren

Published: 9:50pm, 26 Aug 2021Updated: 10:51pm, 26 Aug 2021

Chinese electric vehicle (EV) maker Xpeng Motors is expecting busy times ahead as it benefits from the accelerated adoption of such vehicles in China and aims to sell up to 30 per cent more cars in the third quarter.

The Guangzhou-based carmaker reported record sales and an improved gross margin for the April to June quarter on Thursday.

“We believe China’s smart EV segment is entering a new era thanks to an acceleration in the pace of growth,” He Xiaopeng, the carmaker’s co-founder and CEO, said during an earnings conference call. The company would target the delivery of between 21,500 and 22,500 EVs in the third quarter, or 23.6 per cent to 29.3 per cent higher than the 17,398 units it delivered in the three months ending June, he added.

The Xpeng announcement comes as sales of new energy vehicles – pure electric, plug-in hybrid and hydrogen fuel cell cars – rose 231.5 per cent year on year to 1.09 million units in the first half of this year, according to the China Passenger Car Association. The industry body forecast that full-year deliveries could more than double to 2.4 million EVs amid the accelerated adoption of such vehicles in China.

Xpeng would order a sufficient amount of key components such as automotive chips ahead of time to overcome the shortage carmakers are currently facing, He said. “Given our high-growth potential, chip companies will treat us as a VIP client, which gives us an advantage ahead of other car firms when it comes to competing for component supply,” he added.

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Chinese XPeng electric car can drive and park by itself

The company raked in 3.76 billion yuan (US$580 million) in sales between April and June, which represents a surge of 536.7 per cent year on year and a rise of 27.5 per cent from the previous quarter. The sales were slightly ahead of an analysts’ forecast of US$573.8 million, according to financial data company Factset.