January deliveries of Xpeng Inc (NYSE:XPEV), the electric vehicle manufacturer from China, grew by 115% year-on-year. This represents 12,922 units for the month and a 19% drop from December figures.
Q4 2021 hedge fund letters, conferences and more
Xpeng Success
As reported by CNBC, Chinese EV manufacturer Xpeng had a stellar year in terms of delivery output as it hit 12,922 in January, a 115% increase from the same month last year. It is the fifth straight month that the company has delivered more than 10,000 vehicles in a single month.
“As of Jan. 31, Xpeng said cumulative deliveries of its electric cars — the P7, P5, G3, and G3i — surpassed 150,000 units,” the media outlet informs.
Nio Inc (NYSE:NIO) —Xpeng’s direct rival— also saw solid results as year-on-year deliveries in January grew by 36%, which accounts for 9,652 vehicles. The company also said cumulative deliveries as of January 31 topped 176,722 units.
Both companies have set sights on Tesla Inc (NASDAQ:TSLA) in the Chinese market, as Elon Musk’s company sold a record 70,847 EVs manufactured in the country.
Weathering The Crisis
The global semiconductor crisis has soundly affected the automotive industry, including EV manufacturers. Xpeng CEO He Xiaopeng revealed during an earnings call in July that chip scarcity is the biggest threat to the company’s output.
Back in August, the manufacturer said that, as a result of the crisis, “some planned deliveries of the G3 were affected in August. The Company expects to start deliveries of the G3i to start in September.”
The phenomenon has hit Tesla hard as the company itself revealed it would not be capable of releasing new models in 2022.
Xpeng, however, is investing hard to increase production, and a “technology upgrade” is in the works at the company’s Zhaoqing factory, which “will enable accelerated delivery of the significant order backlog carried over from 2021 as well as allow us to better serve the increasing demand in the new year,” according to Xiaopeng.
