Chinese electric vehicle startup XPENG enjoyed a notable increase of 2.3% in its US market shares after announcing a significant recovery in its car deliveries for Q2 2023.
“XPENG delivered 8,620 Smart EVs, representing a 15% increase over the prior month, with the P7 series deliveries up 17% over the prior month. The Company has achieved positive delivery growth for five consecutive months. Total Smart EV deliveries for the second quarter of 2023 were 23,205 units, representing a quarter-over-quarter increase of 27%. As of June 30, 2023, XPENG has delivered over 300,000 Smart EVs.”
XPENG
The second quarter results are undoubtedly a significant achievement for the Chinese automaker, as it previously suffered from declining sales and deliveries for over a year.
XPENG exceeds its own delivery forecast
XPENG initially expected to reach 21,000 to 22,000 unit deliveries in the second quarter of this year. Remarkably, the company beat that forecast with its 23,205 new car deliveries during this period. That result demonstrated a whopping 27% growth year-on-year.
However, it must be noted that the latest figures remained below the company’s Q2 2022 record of 34,422 units.
It must be noted that the remarkable sales improvement can be partly due to XPENG’s discounts for the P7 model in March. Apart from that, the company has also developed a new production process to lower costs.
“It will make rapid advancements in technology available for our customers as standard, with faster software upgrades, stunning cost savings and elevated product experience.”
XPENG Chairman and CEO He Xiaopeng said at that time
Tesla’s impact
XPENG’s sharp sales decline over the past year can be due to several factors, such as a challenging domestic macroeconomic environment and intensified competition.
Furthermore, Tesla’s bold pricing strategy in the Chinese market has adversely affected its rivals, particularly XPENG. In contrast, the substantial price cuts effectively boosted Tesla’s deliveries to 466,140 units in Q2 2023.
Despite all that, XPENG showed its resilience in June with its record-breaking deliveries of 8,620 units. This result indicated a notable 15% increase from the previous month.
To further accelerate demand, XPENG recently introduced the all-new G6 Ultra Smart Coupe SUV. The company expects this new model to boost its sales in the coming quarters.
See Also:
- XPeng receives 25,000 preorders for its G6 e-SUV within just 72 hours of the presale launch
- XPeng stocks jumped following Chinese EV-maker’s introduction of a new production process
- XPeng plans to deploy its driver assistance software to all cities in China by 2024
- XPeng giving discounts to clear P7 inventory, facelift to be unveiled in China next week
- XPENG reports February 2023 vehicle delivery results
XPENG’s strong quarter performance demonstrates its determination to catch up in the highly competitive industry. Hopefully, this momentum will continue and enable the automaker to revive its losses.
