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Chinese buyers who do not live in lockdown shake off EV price increases

Based in Guangzhou, Xpeng is one of the Chinese electric vehicle companies that has begun to expand overseas.

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Beijing — Among the signs, Chinese drivers are still ready to buy an electric startup Xpeng He said the demand for the car had shaken off the impact of the price increase.

from Nio To Tesla, Chinese electric car company raised prices In the last few months, we have quoted the impact of rising product costs such as battery parts.

After raising thousands of US dollars in MarchXpeng saw a recovery in demand in areas unaffected by the latest Covid blockade in China, Vice Chairman and President Brian Gu said in an exclusive interview with CNBC on Tuesday.Squawbox Asia.. “

With the ability to pass on rising raw material costs to consumers, Gu said the company “can continue to innovate and invest.”

Last week, Nio CEO William Li told CNBC about his company. The biggest problem was not the demand for electric vehicles in China, but the disruption of the supply chain.

According to the China Passenger Car Association, passenger car sales fell 35.5% year-on-year in April, while new energy vehicle sales, including battery-powered electric vehicles, surged 78.4%.

The Covid control still hit Xpeng. Xpeng shares fell 5.5% in US night trading after lower than expected guidance in the second quarter.

The electric vehicle company said it expects total sales in the second quarter to double from 6.8 billion yuan ($ 1.02 billion) to 7.5 billion yuan year-on-year. However, it was below previous FactSet estimates in the range of 7.08 billion yuan to 9.02 billion yuan.

In the first quarter, Xpeng reported a lower than expected loss of 1.8 yuan per share, while FactSet estimates a loss of 1.9 yuan per share. Revenue of 7.45 billion yuan also exceeds FactSet’s expectations of 7.39 billion yuan.

Covid, lack of chips will all be sacrificed

Read more about CNBC Pro electric cars

Gu said in a earnings statement accessed through Refinitiv Eikon that the blockade of Covid is affecting Xpeng’s “key markets” and expects strong order momentum as these areas ease regulations. Said.

In addition to Covid’s management, the company’s CEO Xiaopeng He added on the phone that an ongoing chip shortage was a problem.

“If there wasn’t a revival of COVID in China right now, I think the majority of China’s peers or all new EV makers will actually be limited by chip capacity or overall supply,” he said. increase. He said.

Chinese buyers who do not live in lockdown shake off EV price increases

Source link Chinese buyers who do not live in lockdown shake off EV price increases

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