Xpeng increases turnover and losses

Chinese electric car manufacturer and VW partner Xpeng has presented its business figures for the past year. Xpeng delivered a total of 141,601 electric cars in 2023, 17.3 per cent more than in 2022.

Image: Xpeng

Revenue also increased in line with the rise in deliveries: Total revenue was 30.68 billion yuan (3.98 billion euros), up 14.2 per cent on the previous year. Losses also increased, from 9.14 billion yuan in 2022 to 10.38 billion yuan (1.35 billion euros) in 2023, which corresponds to a 13.5 per cent higher loss.

Xpeng should be encouraged by the development towards the end of 2023: With new models, 60,158 vehicles were delivered in the fourth quarter alone, an increase of 170.9 per cent compared to Q4 2022. Sales in the final quarter also rose significantly, with a 153.9 per cent increase – 53 per cent more than in the third quarter of 2023. One small catch: at the end of September, the company had to significantly reduce the price of its top SUV G9 in China in order to support sales.

“In 2023, vehicle deliveries of XPENG increased quarter by quarter, exceeding 60,000 units in the fourth quarter,” said Xiaopeng He, Chairman and CEO of Xpeng. “Looking beyond short-term challenges, XPENG is about to embark on a major product cycle. We plan to launch more than 10 brand new models over the next three years.” A few weeks ago, Xpeng announced a product offensive that included two new platforms, and the X9 electric van was also launched in January.

But the economic development will also continue: “Our plans on cost reduction through technology and engineering as well as operational improvement have begun to bear fruit,” says Hongdi Brian Gu, Xpeng’s co-president. “Our vehicle margin increased by approximately 10 percentage points quarter-over-quarter in the fourth quarter.” Instead of -6.1 per cent in Q3, the vehicle margin in Q4 was 4.1 per cent.

In the investor call following the publication of the business figures, Xpeng also announced that the company’s new brand for affordable electric cars will be presented at the Beijing Auto Show in April. A price range of 100,000 to 150,000 yuan or 12,810 to 19,210 euros was mentioned. The first model is to be sold via the 500 Xpeng branches, with the company’s own sales network planned for later.

xiaopeng.com, cnevpost.com (call with investors)


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