XPeng has warned its vehicle deliveries could more than halve in the current three month period, and reported a wider loss for the third quarter due to a rise in expenses, Reuters reported.
Electric vehicle makers like Xpeng, Nio, and Li Auto Inc have had to contend with China’s zero-COVID policy in the wake of a recent surge in new cases that has disrupted production of everything from cars to mobile phones and hit the manufacturing sector, the report noted.
It said Xpeng expected vehicle deliveries in the fourth quarter ending 31 December to be between 20,000 and 21,000, about 49.7% to 52.1% lower than the 41,751 units delivered last year.
It also forecast a 40.4%-43.9% drop in fourth quarter revenue to between CNY4.8bn (US$677.49m) and CNY5.1bn.
“As we plan a number of upcoming product and technology rollouts, we are confident that we can achieve significant improvement in both sales volumes and average selling price,” He Xiaopeng, chairman and chief executive officer of Xpeng, told Reuters.
The net loss for the third quarter ended 30 September was CNY2.38bn compared with a loss of CNY1.59bn a year ago, the automaker reportedly said in an exchange filing.
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By GlobalDataCost of sales jumped 20.4% in the third quarter, while expenses related to research and development climbed 18.5%, Reuters added.
