XPeng Inc., a Chinese electric vehicle manufacturer, is set to boost its sales with the launch of the G6 electric sport utility vehicle (SUV) after experiencing a decline in the first quarter, according to Bloomberg. XPeng reported a quarterly return to growth for car deliveries, with a 27% rise in the second quarter, surpassing its own delivery forecast. However, the number of deliveries is still lower compared to the same period last year.
Xpeng’s U.S.-listed shares surged more than 11% in pre-market trade before experiencing a slight decline.
The decline in deliveries for Xpeng began in the first quarter of 2022 due to a challenging macroeconomic environment in China and increased competition from domestic rivals and Tesla, which has been reducing prices to stimulate demand. This has affected Xpeng’s competitiveness.
In contrast, Tesla’s strategy seems to be successful, with the company reporting global vehicle deliveries of 466,140 in the second quarter, exceeding analysts’ expectations.
Xpeng recorded a significant increase in deliveries in June alone, totaling 8,620 cars, a 15% increase compared to May and the highest monthly figure this year. The flagship P7 sedan saw a 17% rise in deliveries in June compared to May, although specific unit figures were not provided.
The release of Xpeng’s latest car, the G6 Ultra Smart Coupe SUV, is expected to increase sales in the upcoming quarters.
While Xpeng continues to face widening losses and intense competition, it has implemented management restructuring and company-wide changes to unlock growth. Other Chinese electric vehicle manufacturers, such as Nio and Li Auto, have performed relatively better in terms of deliveries.
Furthermore, BYD, an automaker backed by Warren Buffett, reported a remarkable 96% year-on-year increase in new energy vehicle deliveries, including battery and plug-in hybrids, in June alone.
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