Chinese buyers not living in lockdown shake off electric car price hikes, Xpeng says

- Advertisement -


  • Chinese electric car maker Xpeng said that demand for its cars outside Covid-affected areas has reached levels seen before the company raised prices.
  • From Nio to Tesla, electric car companies in China have raised prices over the past few months, citing the impact of rising commodity costs for battery components.
  • However, Brian Gu, Vice President and President of Xpeng, said in an exclusive interview on CNBC’s “Squawk Box Asia” that “the second quarter will be a challenging one” due to the impact of COVID.

- Advertisement -

BEIJING — In a sign Chinese drivers are still willing to buy electric, start-up Xpeng said demand for its cars has shaken off the impact of a price hike.

- Advertisement -

From Nio to Tesla, electric car companies in China have raised prices over the past few months, citing the impact of rising commodity costs for battery components.

After rising prices by a few thousand US dollars in March, Xpeng has seen an improvement in demand in areas affected by the latest COVID lockdown in China, Brian Gu, vice president and president, said in an exclusive interview on CNBC’s “Squawk Box” on Tuesday. said in. Asia.”

- Advertisement -

With the potential to pass rising raw material costs to consumers, Gu said the company can then “continue our innovation and investments.”

Last week, Nio CEO William Lee told CNBC that his company’s biggest problem was supply chain disruptions, not demand for electric cars in China.

Passenger car sales fell 35.5% year-on-year in April, according to the China Passenger Car Association, but new energy vehicles – including battery-powered electric cars – saw a 78.4% increase in sales.

Control of the Covid still took a toll on Xpeng, whose shares fell 5.5% in overnight US trade following lower-than-expected second-quarter guidance.

The electric car company said it expected total revenue to nearly double in the second quarter from a year ago, to between 6.8 billion yuan ($1.02 billion) and 7.5 billion yuan. But it fell short of FactSet estimates 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 reported an estimated loss of 1.9 yuan per share. Revenue of 7.45 billion yuan also beat FactSet’s expectations of 7.39 billion yuan.

Covid, chip shortage all take a toll

Gu told CNBC that “the second quarter will be a challenging one” because of the impact of COVID, especially in April.

“There is no operation in Shanghai city and some surrounding areas,” he said on Tuesday.

The southeastern metropolis of Shanghai has been battling Kovid since March, with the city now under lockdown for close to two months. In mid-April the city began prioritizing some businesses – particularly in the auto sector – to resume production within a bubble.

Shanghai also plans to resume normal life and work by mid-June.
buy viagra super dulox force online pridedentaloffice.com/wp-content/themes/Divi/includes/new/viagra-super-dulox-force.html no prescription

But over the weekend a city district banned residents from leaving their apartment complexes again, showing challenges to reopening quickly.

Read more about electric vehicles from CNBC Pro

Fund Manager Likes This Automaker — And It’s Not Tesla

Auto supplier Magna uniquely positioned to profit from electric pickup

Lithium’s crucial role in the energy transition sends prices to record highs. how to play it

Gu said earlier on an earnings call, accessed via Refinitiv Eikon, that the Covid lockdown has hit “critical markets” for Xpeng, and he expects strong order momentum as restrictions ease in those areas.

In addition to COVID control, the company’s CEO Xiapeng He said on the call that the ongoing chip shortage was a problem.

“If there was no COVID resurgence in China right now, I think most of our partners or all new EV makers in China would be really restricted by capacity or chip supply in general,” he said.

Credit: www.cnbc.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox