(Reuters) – Chinese electric vehicle maker XPeng on Tuesday forecast first-quarter revenue above estimates, betting on the launch of its lower-priced G6 and G9 SUV models as well as its foray into European markets.
China has a hyper-competitive EV market where carmakers try to undercut the competition by offering a bevy of features at a much lower cost than their Western counterparts.
XPeng forecast first-quarter revenue of 15 billion yuan to 15.7 billion yuan, the midpoint of which is above analysts’ average estimate of 14.86 billion yuan, according to data compiled by LSEG.
The Guangzhou-based company expects to deliver between 91,000 and 93,000 vehicles in the first quarter, which is about 317% to 326.2% higher than a year ago.
Earlier this month, XPeng revealed its refreshed G6 and G9 SUVs at prices lower than their previous models.
The new G6 starts at 176,800 yuan ($24,402), 11.6% lower than its predecessor, while the starting price of the G9 is 5.7% lower at 248,800 yuan, XPeng Chairman He Xiaopeng said at a press conference.
Both models are equipped with the proprietary Turing AI smart driving system without an extra charge, Xiaopeng said.
The company also signed agreements with distributors Inchcape and Hedin in Europe this month to enter the Polish, Swiss, Czech and Slovak markets.
XPeng is expected to break even sometime later in 2025, President Brian Gu had said in an interview with Reuters in November.
The company delivered 91,507 vehicles in the fourth quarter, up 52.1% from a year ago.
Revenue for the quarter ended December 31 was 16.11 billion yuan, beating estimates of about 16.02 billion yuan.
(Reporting by Rishi Kant in Bengaluru; Editing by Shreya Biswas)
