Beijing (Gasgoo)- On May 21, Chinese electric vehicle maker XPENG released its financial results for the first quarter (Q1) of 2024, reporting total revenue of 6.55 billion yuan, which zoomed up 62.3% year on year.

The net loss for the quarter was 1.37 billion yuan, representing an improvement from the 2.34-billion-yuan net loss in Q1 2023.

Notably, XPENG achieved a double-digit gross margin for the first time, thanks to its partnership with Volkswagen. The Q1 gross margin was 12.9%, up from the 1.7% in the same period last year. Dr. Hongdi Brian Gu, Honorary Vice Chairman and Co-President of XPENG., remarked, "This signifies that XPENG, based on its smart EV business, has developed a unique approach to lift its profitability and international market potential by providing smart technologies."

XPENG currently offers six models on the market, namely, the G3, G6, G9 SUVs, and the P5, P7 sedans, and the X9 MPV. The company delivered 21,821 vehicles in Q1 2024, up 19.7% year over year.

Looking ahead, XPENG expects to deliver 29,000 to 32,000 vehicles in the second quarter of 2024, with projected revenue between 7.5 billion yuan and 8.3 billion yuan. The upcoming MONA brand will debut its first A-segment all-electric sedan in June, with mass production and deliveries starting in the third quarter. Over the next two years, XPENG plans to introduce several more models on the A-segment platform.

In the fourth quarter of this year, XPENG will launch a new B-segment battery-electric sedan, featuring the company’s latest technology and cost-efficient production.

On April 17, XPENG and Volkswagen announced a collaboration to co-develop a leading electronic and electrical architecture for Volkswagen's electric vehicles in China, integrating XPENG's advanced centralized computing and domain controller-based systems. This marks their third strategic partnership inked in under a year, with the new architecture set to debut in Volkswagen's China-made electric vehicles from 2026.

XPENG's Chairman and CEO, He Xiaopeng, highlighted that revenue from platform and software technology services has become a significant profit driver since Q1 2024. This innovative business model, distinct from traditional automakers, not only boosts XPENG's sales but also enhances market influence and financial returns through global partnerships.