XPeng Scores Record Deliveries In Q1 Despite Seasonal Softness, Chip Shortage; EV Maker’s 3rd Model Coming In Q2
Chinese EV maker XPeng Inc. (NYSE: XPEV) reported Thursday strong deliveries for the month of March as well as for the first quarter, signaling that its sales momentum is intact.
What Happened: XPeng delivered 5,102 smart EVs for the month of March, the company said in a statement. This comprised 2,855 P7 EV sedans and 2,247 G3 SUVs.
The March number represented a 384% year-over-year increase and 130% month-over-month growth.
After a pick in momentum in the second half of 2020 and in the first month of the current year, deliveries slowed in February, dragged by a slow uptake amid the Chinese New Year holiday and the introduction of Tesla, Inc.’s (NASDAQ: TSLA) made-in-China Model Y vehicle.
In February, sales declined 63% month-over-month to 2,223 from the record monthly total of 6,015 in January.
The company chimed in a record performance for the quarter, having delivered 13,340 EVs, representing a 487% year-over-year increase.
XPeng said the quarterly number stood testimony to its robust growth momentum despite the seasonal industry-wide slowdown in car sales.
Related Link: Nio, XPeng File For Hong Kong Listings: Report
Why It’s Important: XPeng’s March performance, though paling before the record January show, should come as a relief. The global auto industry is reeling from the impact of chip supply shortage, with both legacy automakers and EV manufacturers warning of production disruptions.
The company’s Chinese peer NIO Limited (NYSE: NIO) said last week it is shutting production at its Hefei plant for five days, beginning March 29, due to the chip crunch. The company also lowered its first-quarter deliveries forecast.
XPeng’s growing brand recognition and product appeal, expanded product portfolio, marketing efforts and supercharging service networks across China were primarily behind the sales momentum, the company said in the statement.
What’s Next: XPeng said it expects to begin deliveries of the recently launched lithium iron phosphate battery-powered G3 SUVs and P7 sedans in China in April and May, respectively.
The company also said it plans to unveil its third production model in the second quarter 2021, with deliveries planned in the fourth quarter 2021.
XPeng closed Wednesday’s session up 7.95% to $36.51.
Related Link: Xpeng’s Autonomous P7 Vehicle Fleet Drives 3,600 Kms, Sets Record
Photo: Courtesy of Xpeng
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