In Q2, Xpeng's service and other revenue was 1.29 billion yuan, a year-on-year increase of 102.5%. Since the launch of the Xpeng MONA M03, Xpeng will enter a strong product cycle and a fast-growing period, and will launch multiple new products and redesigns in the next three years. He Xiaopeng revealed that Xpeng is indeed planning a Robotaxi plan, but does not want to enter the heavy operational side.
On August 20th, Caixin reported (Reporter: Xu Hao) that Xpeng Motors released its financial data for Q2 and H1 of 2024. In Q2, Xpeng achieved total revenue of 8.11 billion yuan, a year-on-year increase of 60.2% and a quarter-on-quarter increase of 23.9%. The net loss was 1.28 billion yuan, compared with a net loss of 2.8 billion yuan in the same period last year, and a net loss of 1.37 billion yuan in the first quarter of this year. In the first half of this year, the company's total revenue was 14.66 billion yuan, a year-on-year increase of 61.2%, and the net loss was 2.65 billion yuan, compared with 5.14 billion yuan in the same period last year, a year-on-year decrease of 48.44%.
Xpeng's positive trend in Q2 is thanks to its technical cooperation with Volkswagen. On July 27, 2023, Volkswagen Group made a strategic minority investment in Xpeng Motors and signed a share purchase agreement. On February 29, 2024, Xpeng Motors and Volkswagen signed a joint procurement plan for the shared use of parts of the vehicle models and platforms. On April 17, 2024, the two parties once again signed the CEA electronic and electrical architecture technical strategic cooperation framework agreement.
Xpeng Motors Chairman He Xiaopeng mentioned in the financial report conference call that in July 2024, Xpeng and Volkswagen Group signed a joint development agreement for the electronic and electrical architecture technology cooperation, to jointly develop industry-leading electronic and electrical architecture for the CMP and MEB platforms produced by Volkswagen in China. From 2026 onwards, all domestically produced Volkswagen branded vehicles based on the CMP and MEB platforms will be equipped with this electronic and electrical architecture. The first model equipped with the jointly developed electronic and electrical architecture is expected to be mass-produced within 24 months.
Benefiting from this, Xpeng's service and other revenue in Q2 was 1.29 billion yuan, a year-on-year increase of 102.5% and a quarter-on-quarter increase of 28.8%, and 2.3 billion yuan in the first half of the year, a year-on-year increase of 98.3%. In the Q2 report, Xpeng stated that this was mainly due to the growth in sales of repair services, which is consistent with the cumulative sales growth of autos, and the growth in technical research and development services sales related to platform and software strategic technology cooperation with Volkswagen Group. Xpeng's gross margin in Q2 increased to 14%, compared with -3.9% in the same period last year and 12.9% in the first quarter of this year, thanks to the realization of cost reduction through technology and the realization of technology monetization income from the strategic cooperation with Volkswagen.
In addition to the continued improvement in performance brought about by the technical cooperation with Volkswagen, the deployment of more new models has also made Xpeng Motors' management optimistic about the future. "Since the launch of the Xpeng MONA M03, Xpeng will enter a strong product cycle and a fast-growing period, and will launch multiple new products and redesigns in the next three years," said He Xiaopeng.
It is reported that Xpeng MONA M03 will be officially launched on August 27th and will quickly start large-scale delivery, and plans to launch the first model of the new generation of automatic driving hardware platform P7+ in the fourth quarter. "The delivery of MONA M03 and P7+ will significantly expand Xpeng's market share in the delivery climb and Xpeng is confident that the delivery volume will increase significantly quarter-on-quarter in the third and fourth quarters of this year and set a new record for delivery volume in Q4," said He Xiaopeng.
Facing the impact of Tesla's FSD entering the smart driving market in China, He Xiaopeng said that on July 30, the XNGP was fully pushed to Xpeng users with AI Tianji System 5.2 version, and entered a new phase of "unlimited cities, unlimited routes, good to use across the country." Next, it will soon connect ETC toll stations, community parking lot gates and other breakpoints to achieve the end-to-end experience of "good to use from parking space to parking space," and achieve the second step of end-to-end large model capability. "At some point next year, the Xpeng smart driving version will be several times or even more advanced than it is now, which will lead to a huge change in sales. At the same time, combined with the advantages of cost competition of the new generation of hardware platforms that P7+ will launch at the end of this year, it will allow more customers to experience higher-level smart driving at affordable costs," He Xiaopeng expected.
In the current popular Robotaxi track, He Xiaopeng revealed that Xpeng is indeed planning the Robotaxi plan, but does not want to enter the heavy operational side. "Xpeng hopes to make the car first, so that it can cooperate with global operators."
According to the financial report, Xpeng Motors delivered 30,200 new cars in Q2, a year-on-year increase of 30.2%, and a total of 52,000 in the first half of the year, a year-on-year increase of 25.6%. After a good quarter, Xpeng Motors continues to provide high performance guidance, with total deliveries in Q3 expected to be around 41,000 to 45,000 vehicles, a quarter-on-quarter increase of 35.7% to 49%, and sales revenue expected to reach 9.1 billion to 9.8 billion yuan, a quarter-on-quarter increase of 12.2% to 20.8%.