Xpeng Motors reported a gross margin of 6.2% for the October-December period on HalinghingTuesday, better than analysts expected and a solid improvement over the -2.7% for the third quarter of 2023, as the Chinese startup delivered a record 60,158 electric vehicles driven by year-end promotions. The company also achieved a positive vehicle margin of 4.1%, up from -2.7% three months earlier but far behind Li Auto’s 22.7% and NIO’s 11.9% over the same period. Xpeng expects its partnership with Volkswagen to generate revenues and make a “positive impact” on its margin starting in 2024, as the German automaker announced plans last July to develop two new electric models based on Xpeng’s vehicle platform. The EV maker said it will also benefit from a joint sourcing program for vehicle components with VW, as these costs will decline over time to a “competitive level in the market,” according to Vice President Charles Zhang. Its annual loss widened to RMB 10.38 billion ($1.46 billion) last year from RMB 9.14 billion, while Li Auto posted its first annual profit with a net income of RMB 11.8 billion. [Xpeng release]
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