EV maker Xpeng sees higher quarterly deliveries as demand rises

Xpeng unveiled an increase in the second-quarter delivery forecast during trading on Tuesday, following the company’s price cut strategy to seize ground in the Chinese electric vehicle market. The positive outlook helped its US-listed shares to rise by 8% and its Philippine shares by 5%.

Company target of delivering 29,000 – 32,000 vehicles during the second quarter would be a leap of 25% to 37%. This increase in projected deliveries implies that other business strategies that are commonly used by organisations about promotions, lower charges, or heavy investments in key technologies like AI and self-driving automobiles are working efficiently.

Lots of discounts are expected in the first Xpeng G6 and G9 electric SUVs, thus boosting delivery in the short run but there is a string warning from Xiaomi. The tough competitive rivalry within the still-growing EV market came under discussion especially regarding the possible effects of Xiaomi’s SU8 on Xpeng’s SUV line. Rosalie Chen, an analyst at Third Bridge, spoke about the Xiaomi’s SU8 and its influence on the SUV series of Xpeng.

However, its performance and strategic growth direction do not seem to be a problem; it is the external environment that threatens the company’s growth on the international level. Recent globalisation muscles were provided by the European Commission’s initiation of an anti-subsidy probe and recent US tariffs hikes, which have compounded the company’s global expansion move. However, Xpeng is not dettered, and is planning to launch a series of new models, ranging from 100,000 yuan to 400,000 yuan within the next three years. Firstly, it is the electric sedan that will be launched in the fourth quarter of the current year.

Specifically, company officials revealed five international strategies including increasing sales in more than twenty countries by offering subsidies on electric vehicles under environmental conservation measures. Yet, the regulation psyche and the tariff hike reveal that Chinese electric vehicle manufacturers are not without risks when seeking to go global.

(with inputs from Reuters)