Based in Guangzhou, Xpeng is one of the Chinese electric vehicle companies that has begun to expand overseas.
Featured China | Future Publishing | Getty Images
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.
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.
Gu told CNBC, “The second quarter will be a challenging quarter,” especially in April, influenced by Covid.
“Shanghai and some of its surrounding areas are not doing business in their own right,” he said Tuesday.
The big cities in the southeastern part of Shanghai have been fighting Covid since March. Currently, the blockade of the entire city is approaching two months. In mid-April, the city began prioritizing some companies, especially in the automotive sector, to resume production within the bubble.
Shanghai also plans to restore normal life and work by mid-June. However, during the weekend, the downtown area banned residents from leaving their apartments again. Challenges for quick resumption.
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