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The automaker’s deliveries in October included over 6000 sport sedans, 3657 G3 and G3i SUVs, as well as 437 units of the newly launched P5 smart family sedan.
Chinese EV maker Xpeng Inc (NYSE: XPEV) announced it again delivered over 10,000 cars in October. Following this announcement, the company’s Hong Kong Shares rose by about 3%. Today XPEV stock on the NYSE exchange is 2.44% up in the pre-market.
The company delivered 10,138 cars in October and while this is lower than the 10, 412 it delivered in September, it represented a 233% year-on-year increase.
In 2021 alone, the company noted it has delivered 66,542 cars pushing the total deliveries of the company to over 100,000. This is despite the shortage of silicon semiconductors that car makers globally are dealing with. The auto startup Nio for example needed to cut its third-quarter delivery forecast even as its production process was affected by the constraints of the chip shortage.
Xpeng Cars Production Unaffected by Chip Shortage
Xpeng previously noted that the impact of the clip shortage on the company was non-existent. Regarding the global chip shortage, XPeng Vice Chairman, Gu Hongdi Brian stated:
“We aware of the global shortage and fortunately, we are not affected by the problem.”
Gu explained that the company produces ‘premium smart electric vehicles with high-end chips’ and that their estimated production for 2021 was well achievable. This statement from as early as January has proven to be true.
The automaker’s deliveries in October included over 6000 sport sedans, 3657 G3, and G3i SUVs. It also delivered 437 units of the newly launched P5 smart family sedan.
Increasing Competition in the Chinese EV market
The EV market is fast expanding with more players coming into the industry. Auto startups like Nio and LiAutos could provide serious competition for Xpeng alongside Tesla Inc (NASDAQ: TSLA) and BYD. Smartphone producer, Xiaomi has also unveiled plans to begin production of electric vehicles in 2024.
Perhaps as a strategy, the company continues to build more supercharging facilities around the country. The company provides free supercharging service to its customers in 221 cities all over Chine with about 1648 charging stations.
Also, with demand for EVs far outweighing the supply, there seems to be enough room for everyone. This has led popular brands like Ford (NYSE: F), General Motors (NYSE: GM), and Tesla to hike the prices of their vehicles. Others are looking to explore additional markets for their cars. Like MG who expanded into Europe, Nio opened a dealership in Oslo and BYD delivered an SUV to Norway.
Europe is a difficult market for foreign automakers. Toyota and Ford Motors are proof positive of this. There have also been failed attempts by Chinese automakers like Qoros to break into the European market. On its part, Xpeng has yet to announce any such plans.