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A XPeng Inc. G6 electric sports car (SUV). The company hopes that the launch of the new car will increase sales, which fell in the first quarter.
Kylie Shen | bloomberg | Getty Images
shares Xpeng It rose in pre-market trade in the US after the Chinese electric car maker reported a quarterly return to growth for vehicle deliveries, after more than a year of decline.
Xpeng said Saturday that it delivered 23,205 vehicles in the second quarter of 2023, an increase of 27% on a quarterly basis. This exceeded the company’s delivery forecast of between 21,000 and 22,000 units. This was still down from the 34,422 cars delivered in the second quarter of last year.
Shares of US-listed Xpeng rose more than 11% in pre-market trading before paring some of those gains.
Deliveries have fallen each quarter since the first quarter of 2022 for Xpeng, as it grappled with a tough macroeconomic environment in China and increased competition from local rivals and from Tesla, which has lowered prices in China to spur demand. This has also damaged Xpeng’s competitiveness.
Tesla’s strategy appears to be working with the company reporting global vehicle deliveries of 466,140 in the second quarter, beating analysts’ expectations.
Xpeng said deliveries in June alone amounted to 8,620 vehicles, up 15% from May and the highest monthly number for deliveries this year.
The Guangzhou, China-headquartered company said deliveries of its flagship P7 sedan were up 17% in June compared to May, but did not give an exact unit number.
Xpeng’s latest vehicle – the G6 Ultra Smart Coupe SUV – was launched at the end of the second quarter, with deliveries starting this month. Xpeng hopes this will lead to increased sales in the coming quarters.
Xpeng’s losses continue to widen and the competition is getting fiercer. Last month, a Chinese electric car startup New She made huge discounts on her cars.
Xpeng has been reorganizing its management structure and overhauling the company over the past few months in hopes of unleashing growth.
Some of the company’s competitors have fared better. Lee Otto It delivered 32,575 vehicles in June while Q2 numbers were 86,533. Meanwhile, Nio delivered 10,707 vehicles in June and 23,520 vehicles in the second quarter, not far ahead of Xpeng.
Meanwhile, Warren Buffett-backed automaker BYD delivered 253,046 new energy vehicles — which include battery and plug-in hybrids — in June alone, representing a 96% year-over-year increase.
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