May 28 (Reuters) – Electric vehicle maker Xpeng on Thursday forecast second-quarter revenue below market expectations, underscoring a prolonged slowdown in demand and stiff competition in the Chinese EV market.
Domestic car sales in China fell for a seventh straight month in April, with industry estimates showing that EV and plug-in hybrid sales growth were likely to slow in 2026 after years of rapid expansion.
Still, Chinese EV makers are betting on advanced driver-assistance systems, feature-rich vehicles and broader model lineups to help navigate the downturn.
Here are more details on Xpeng’s first-quarter results:
• Xpeng projected total revenue to be between 19.60 billion yuan ($2.89 billion) and 20.80 billion yuan in the second quarter, representing a year-over-year rise of 7.3% to 13.8%.
• The forecast is below analysts’ average estimate of 21.71 billion yuan, per data compiled by LSEG.
• Revenue for the first quarter ended March stood at 13.03 billion yuan, above estimates of 12.93 billion yuan.
• Total vehicle deliveries for the first quarter were 62,682 units, down 33.3% from 94,008 in the same period last year. For the June quarter, Xpeng projected deliveries to be between 100,000 and 106,000 units.
• “Kickstarted by the successful launch of the GX, Xpeng will deliver four new models this year, positioning us for a robust sales growth trajectory,” CEO Xiaopeng He said.
• The company’s U.S.-listed shares, which have slid nearly 19% so far this year up to last close, were up marginally in early trading.
• Xpeng said first-quarter net loss attributable to ordinary shareholders stood at 1.78 billion yuan, widening from a loss of 664 million yuan in the year-ago period and compared with a profit of 383.2 million yuan reported in the previous quarter.
($1 = 6.7796 Chinese yuan renminbi)
(Reporting by Deborah Sophia in Bengaluru; Editing by Diti Pujara)
