China’s Emerging NEV Manufacturer: XPeng

In China’s new energy vehicle (NEV=BEV+PHEV+FCEV) market, the presence of emerging manufacturers specializing in NEVs is increasing year by year. This report is the fourth part of a series, giving a summary of recent trends of XPeng.

XPeng’s sales in 2022 reached 26.86 billion CNY, an increase of 28.0% from the previous year. Of this, sales from automobile sales went up by 23.9% year-on-year to 24.84 billion CNY. The company posted a net loss of 9.14 billion CNY, expanding from the previous year’s deficit of 4.86 billion CNY. Although sales rose due to an increase in the number of units sold, the net loss widened pushed up by an expansion in R&D expenses as well as selling, general and administrative expenses.

XPeng’s sales from January to June 2023 decreased by 38.9% year-on-year to 9.10 billion CNY. Of this, sales from automobile sales dropped by 43.0% year-on-year to 7.94 billion CNY. The company posted a net loss of 5.14 billion CNY, which was greater than the 4.40 billion CNY deficit in the same period last year. The main reasons for the decline in sales and profits are a decrease in sales volume and the end of the government’s NEV subsidy policy.