On March 17, Chinese electric vehicle manufacturer XPeng released its previous year-end financial report. Its total revenue for 2022 was 26.86 billion yuan ($3.89 billion), representing a 28% increase from the previous year. Its revenue for Q4 was 5.14 billion yuan ($750 million), down 39.9% compared to the same period in the previous year.
XPeng delivered 22,000 vehicles in the fourth quarter of 2022, bringing its total vehicle deliveries for the year to 120,000 units, which represents a 23% increase from the previous year.
XPeng recorded a net loss of 9.14 billion yuan ($1.33 billion) in 2022, marking an 88.1% increase from the previous year. This figure was lower than NIO‘s net loss of 14.437 billion yuan ($2.1 billion), but higher than Li Auto‘s net loss of 2.032 billion yuan ($294 million). Additionally, XPeng‘s gross profit margin decreased from 12.5% in 2021 to 11.5% in 2022.
During the conference call, XPeng chairman He Xiaopeng acknowledged that the challenges posed by the macro-environment and competition within the EV industry in the past year enabled the company to identify internal issues early on. Consequently, XPeng initiated strategic reviews and adjustments towards the end of the year. The appointment of Wang Fengying, the former president of Great Wall Motor, as XPeng‘s new president, garnered significant attention from the public amidst these changes.
Despite the changes made, XPeng‘s financial report suggests that the company is still facing significant challenges. According to the report, XPeng expects its delivery volume in the first quarter of this year to be between 18,000 and 19,000 vehicles, which represents a year-on-year decrease of approximately 45.0% to 47.9%. Additionally, its total revenue is expected to range from 4 billion yuan ($580 million) to 4.2 billion yuan ($609 million), which represents a year-on-year decrease of about 43.7% to 46.3%.
In comparison, NIO is projected to deliver 31,000 to 33,000 vehicles in the first quarter, with revenue targeting between 10.93 billion yuan ($1.59 billion) and 11.54 billion yuan ($1.67 billion). Li Auto is expected to deliver 52,000 to 55,000 vehicles in the first quarter, and its total revenue is expected to be between 17.45 billion yuan ($2.53 billion) and 18.45 billion yuan ($2.68 billion).
On March 10, XPeng launched the P7i with a price range from 249,900 yuan ($36,272) to 339,900 yuan ($49,335), which was slightly higher than market expectations. Despite this, He Xiaopeng noted that the car has garnered significant interest, with the number of test drives reaching the highest level in recent months since its launch.
XPeng is set to release its latest vehicle, the brand-new G6, at the upcoming Shanghai Auto Show, with official listings and deliveries slated for the end of the second quarter. He Xiaopeng predicts that the sales volume of the G6 will reach two to three times that of the P7. Additionally, XPeng plans to unveil its pure electric seven-seater MPV in the second half of the year. He Xiaopeng further stated that the company’s sales volume is expected to significantly increase month-on-month from the third quarter onwards as well as year-on-year.
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Furthermore, He Xiaopeng revealed that XPeng plans to achieve a cost reduction of over 50% in automated driving technology from this year to next year. Additionally, the company aims to reduce vehicle hardware costs, including powertrain costs, by around 25%. When asked about how XPeng plans to achieve this cost reduction, He Xiaopeng acknowledged that the company’s cost control has not been optimal in the past. However, he added that XPeng can leverage integrated stamping technology, vehicle packing technology, and battery cell production to reduce costs in the future.