Xpeng halves net losses
The year-on-year increase in sales was no surprise. Thanks to new models such as the mid-range sedan Mona M03, Xpeng was able to increase vehicle sales from Q1 2024 to the first quarter of this year by a whopping 330.8 per cent to 94,008 electric cars. However, as the Mona M03 is significantly cheaper than an Xpeng P7 or G9, for example, turnover has not risen quite as much as sales over the year. Nevertheless, an increase of 145.5 per cent to 15.81 billion yuan (equivalent to around 1.94 billion euros) is a positive development. However, compared to the fourth quarter of 2024, sales fell slightly by 1.8 per cent – the start of the year is traditionally weaker in China than the final quarter due to the multi-day New Year celebrations.
However, Xpeng can also report great progress on the road to profitability at the start of 2025: Although the quarterly balance sheet still shows a net loss, this amounts to 0.66 billion yuan, or the equivalent of ‘only’ around 81 million euros. A year ago, the figure was 1.37 billion yuan (around 168 million euros at the current exchange rate), and the final quarter of 2024 also showed a net loss of 1.33 billion yuan despite the slightly higher turnover. However, Xpeng still has to prove whether the trend will continue in the coming quarters.
The car division remains the most important source of income for Xpeng: of the 15.81 billion yuan turnover, 14.37 billion yuan comes from vehicle sales. Other sources of income are not listed separately in the press release, but the company’s own charging stations are likely to be one of them: Xpeng operates 2,115 of its own stations in China, including over 1,000 fast chargers for its own S4 and S5 models.
However, the company does not break down its vehicle sales by market. It therefore remains unclear what proportion was sold in China and exactly how the overseas business, for example in Europe, is developing. Xpeng states, for example, that the physical sales network comprises a total of 690 shops in 223 cities. Chinese manufacturers usually use this formulation for the domestic market. The exact number of showrooms Xpeng operates abroad is not specified.
“Despite seasonality for auto sales, our quarterly deliveries hit a new historical high, making us the top-selling automaker among emerging EV companies,” said founder and CEO He Xiaopeng. “Positive market feedback strengthened our confidence in our three-year product cycle. We remain committed to our steadfast long-term growth strategy and continue to launch more blockbuster products. We are just beginning to unleash our growth potential.”
The new flagship model X9, which Xpeng presented in mid-April, is also expected to contribute to this – it is a revised version of the electric van launched in 2023. The sales trend in April also continued to be positive with 35,045 vehicles. This means that the company sold more cars in April than in the entire second quarter of 2024 (30,207).
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