XPeng will also launch a C-class model in the second half of next year to bring an ultimate experience to a user base that needs more space and comfort.
(Image credit: CnEVPost)
XPeng Motors reported its second-quarter earnings on Tuesday and revealed new information, including product plans for next year, during a subsequent analyst conference call.
XPeng will launch two new platforms next year, and they will support the development and manufacturing of at least six B- and C-class vehicles, the company's management said.
By 2025, the two platforms can be quickly upgraded to the next step of intelligence and electrification.
XPeng said it will launch a B-class model in the first half of next year that will take on Tesla's Model Y.
XPeng will rely on the new platform to accelerate the pace of product launches to enrich its product matrix in the RMB 150,000 ($22,000) to RMB 500,000 price range.
A B-class car to be launched next year will expand XPeng's share of this segment, the company said.
XPeng will also launch a C-class model in the second half of next year to deliver an ultimate experience for a user base that needs more space and comfort, its management said.
With these two new models and the flagship SUV XPeng G9, XPeng management is confident that they will drive high sales growth.
XPeng management believes that sales of current models will continue to grow after the launch of the new models next year.
XPeng P7, the company's core product, will be revamped next year and its management believes it will attract more customers.
The P7 facelift will have the potential for continued sales growth, but the lower-priced P5 sedan may see some loss in sales from its current base due to increased competition.
The XPeng G9 is the model getting a lot of interest as it takes the company's electrification technology up a generation. The company's management expects the G9 to surpass the P7 in terms of monthly deliveries.
The top-of-the-line version of the G9 will support 4C fast charging, while other versions will support 3C fast charging. C refers to the charging multiplier of the battery, and 4C means that the battery can theoretically be fully charged in a quarter of an hour.
XPeng is confident that the new platforms, along with improved manufacturing processes including integrated die-casting technology, will see the G9 and next year's new models have significantly higher gross margins than the current models.
XPeng management believes that the G9 has very little overlap with existing models and that the new models to be launched next year will be different in sizes and price points compared to the G9 and will not compete with the P7.
XPeng has already achieved in-house development and production of motors and will accelerate the use of innovative technologies in this area in the future.
XPeng reported a net loss of RMB 2.7 billion in the second quarter, up 126.1 percent from RMB 1.2 billion in the same period last year and up 58.81 percent from RMB 1.7 billion in the first quarter. Its management said 938 million yuan of that came from foreign exchange losses rather than operating losses.
Excluding the foreign exchange loss, XPeng's second-quarter loss was essentially unchanged from the first quarter.
XPeng said its delivery guidance for the third quarter has taken price increases and promotions into account, and that the overall promotions are less intense than price increases, and it expects its gross margin for the third quarter to return to the level of the first quarter.
The recent power crunch in southwestern China's Sichuan province is a concern. XPeng management said the company has communicated with a number of supply chain companies in advance, and it appears that the local power crunch will have little impact on XPeng at this time.
XPeng's weak Q3 outlook suggests further demand deterioration, says Deutsche Bank