Chinese EV maker XPeng reports wider second-quarter loss, expects to deliver fewer vehicles amid strained supply chain
- Carmaker reports an underlying net loss of 2.88 yuan per share, widening from a loss of 1.38 yuan per share in the previous quarter
- G9 SUV to boost sales at XPeng in the fourth quarter and 2023, Deutsche Bank says
The carmaker said it expected to deliver 29,000 to 31,000 EVs between July and September, falling short of a forecast of 35,000-37,000 units made by Deutsche Bank last week. The weak guidance comes despite its new model – the G9 medium-sized sport utility vehicle (SUV) equipped with a semi-autonomous driving system – receiving 23,000 orders in the first 24 hours after its launch on August 10.
XPeng’s forecast suggests a strained supply chain is still dragging down sizzling growth in mainland China’s EV sector.
“Supply chain remains an issue that is hindering the growth of XPeng and its rivals,” said Ivan Li, a fund manager at Shanghai-based Loyal Wealth Management. “The estimated delivery volume appears to be much lower than market expectations.”
The carmaker, which is backed by Chinese e-commerce giant Alibaba Group Holding, is viewed as a credible local challenger to US carmaker Tesla, which dominates the luxury EV market in China, the world’s largest market for such cars. Other Chinese carmakers with similar potential include Shanghai-based Nio and Beijing-headquartered Li Auto.
