On August 20, Xpeng CEO He Xiaopeng gave details of the companyβs next-generation sedan, the Xpeng P7+, in an earnings call. The new model marks a distinct change in the companyβs flagship XNGP assisted driving package.
He announced that the P7+ would launch in the fourth quarter. As previously communicated, the company expects sales to increase in the second half of 2024 largely due to the new Mona M03 model in Q3 and the forthcoming P7+ in Q4. In the second quarter, Xpeng delivered 30,207 EVs, earning a revenue of 8.11 billion yuan (1.14 billion USD), a year-on-year increase of 60.2%. Furthermore, gross profit margin increased by 17.9% year-on-year to 14%. Sales guidance for the third quarter is 41,000 to 45,000 units.
Sales are expected to be further boosted in the fourth quarter when the P7+ launches. The Xpeng P7+ is a large sedan with dimensions of 5056, 1937, and 1512 mm (l/w/h) along with a 3000 mm wheelbase. At the front, the car has an X-type face with split headlights and a largely enclosed front. An active grille improves aerodynamics, but so far we do not have a drag coefficient or range information for the new model.
Most importantly, the P7+ will be the first model to feature Xpengβs next-generation autonomous driving hardware platform. This means that the car will no longer require Lidar and will switch to a purely vision-based system similar to Teslaβs FSD for its smart driving XNGP system. Xpeng claims that the company has cost advantages that make it difficult for competitors to replicate due to innovation and cost.
He said that Xpeng aimed to extend the XNGP system to models priced from 150,000 yuan, making Xpeng the first company to achieve high-end intelligent assisted driving on 20,000 USD models. The company has a goal to deliver the same experience as seen overseas on robotaxis with its XNGP-equipped cars within 18 months. This effectively means L3+ software capabilities and user experience but using cars equipped with L2 hardware and the inherent cost savings.
He Xiaopeng also said that there will be more announcements about technological breakthroughs in the fields of large AI models, robots, and robotaxis and that they would be announced at the Mona M03 press conference on August 27 and at the annual technology day on October 24.
Xpeng has entered a period where international sales are undergoing rapid development and are becoming an important driver for both sales and profit growth. The company claimed that in the second quarter of this year, it ranked first in total exports for mid to high-end Chinese pure electric brands. For the first time, the contribution from overseas sales exceeded 10%. The Xpeng G9 was the top-selling mid to large pure electric SUV in Norway, Denmark, and Israel and ranks in the top three In Sweden and the Netherlands. As of July, Xpeng had entered 30 countries and regions, including Europe, the Middle East, and Latin America. During the second half of the year, the company will expand into more right-hand drive markets, including the United Kingdom, Australia, and various Southeast Asian nations. The number of international sales stores are expected to double by the end of the year from the current 70.
Sources: Autohome, Fast Technology
