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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Cost of sales jumped 20.4% in the third quarter, while expenses related to research and development climbed 18.5%, Reuters added.