XPEV - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Gentlemen, thank you for standing by for the Second Quarter 2024 Earnings Conference Call for XPeng Inc. [Operator Instructions] Today's conference call is being recorded. I will now turn the call over to your host, Mr. Alex Xie, Head of Investor Relations and Capital Markets of the company. Please go ahead, Alex.

Alex Xie

you. Thank welcome Quarter and Call. Earnings XPeng's to everyone, XXXX Second Conference Hello,

financial issued available today were operating online. our Our results earlier by and newswire services and

Mr. You Co-Founder, on today's by from our press of can will website call the include team IR our Mr. Mr. James our Participants the and Finance Corporate Finance of Xiaopeng; Vice Gu; President of section myself. Vice release ir.xiaopeng.com. at CEO, and President management VW also view Wu; Chairman Charles Projects, Brian and Vice and Chairman Accounting, President, visiting Dr. earnings Zhang; and

begin website. remarks, webcast conclude replay will IR be the A with conference this call the call will Management will with prepared of available session. our a of Q&A on and section

today's Securities Litigation Act continue, contain safe note will the under we forward-looking Reform Private provisions made please of U.S. harbor that discussion of XXXX. the statements Before

statements and involve uncertainties. risks inherent Forward-looking

be to under information risks, views law. results with the not materially any the as company's from the filed included is forward-looking U.S. of uncertainties these except such, regarding public statements the in the company obligation and company Commission. may does As any required The filings different assume Exchange relevant Further update and Securities as today. expressed other applicable

ahead. Chairman unaudited will the also Xiaopeng. of GAAP to now unaudited Please non-GAAP reconciliation as CEO, call measures financial financial note I press include Co-Founder, XPeng's contains this go as non-GAAP call release a and measures measures. turn earnings press over to disclosure well measures. Please Mr. that conference XPeng's our GAAP of unaudited unaudited release the the and earnings

He Xiaopeng

makers. and revenues further placing delivered technology-driven EV quarter and second of strategic [Foreign has and the EVs, XX% Technical us Language] [Technical efficient with Supported by Chinese XPeng improved In year-over-year. up XX% gross to from our XXXX, margin at Difficulty] Hello, XX,XXX management forefront up operation everyone. smart Cooperation Volkswagen, cost reductions, of the quarter-over-quarter XX%,

completed bringing in a areas. we we upgrades internal organizational and restructuring, adding importantly, value style, new out key marketing, and AI talent, top already More on design, of round are of

consistently intense period We're with well-rounded an cycle of number and of the August, product in entering our through foster to products strength rapid introduced MONA addressing of launch end competitiveness MXX development. we're the with and a market to gaps new of in competitive models XXXX. a be launch solidifying

trajectory. achieving technology new system, and With targeting global sales in product cost substantial and coupled reaching and fuel domestic delivery record our QX, advancement, innovations products delivery technology-driven these fourth reductions, with volume in and new quarter-over-quarter of a an quarter. We're marketing confident and sustainable growth growth will the AI our of enhanced respectively, QX

Language] [Foreign

and [indiscernible] MX was XXXX, we enthusiastic Mona response. thrilled by began preselling consumers'

the presale in comparable stands with far year's So period. have segment RMB last [indiscernible] in its surpassed presale GX a XXX,XXX design orders the top stylish many [indiscernible] orders sales unique cockpit, which MONA smart segment. vehicles XXX,XXX MXX out MXX is as and the aspects B trending and benchmarks range. the Price among Class offering as outperforms setting of MONA price market competitor best-in-class experience, that in CNY sedan, the Across emerging driving in A a

deliveries anniversary with tenth begin on XX, [indiscernible] launching set MONA August and our thereafter. hosting be MXX mass shortly We'll to

I'm product this MONA word records, sales. increase the Mona XPeng new supply outstanding ramp-up will up MXX ramp-up reputation in hopeful of MXX the production fast to a support will help fast Our partners pace mouth have chain and through support us. of of delivery production quickly strong that geared which alongside enhance set

bond, be our reduction competitors. hardware our customers. making PX+ boast targets that outperform model overall features on first both in cost a and in wheel fourth for our it The sedan, our vehicle advantages innovations X beat PX+ not the X-meter also ADAS-related interior space will family and the quarter. length, cost over new ADAS hardware next-generation Next, platform. PX+ we'll but next-generation officially launch only stabling technology Furthermore, based base superior with and exclusive choice our in

deliveries launches during models significantly customer which optimistic time, At more across manufacturing, efficient sales X launch operational share. ramping accelerating major bolstering remain the our expanding scalable product With market of we're cycle. supply our same chain, a and upcoming new feel will and marketing, up, delivery, deliveries to system, capabilities product I dedicated about and our

[Foreign Language]

on mobility to change significant auto models AI the the end-to-end reshape ahead be in electrification more much and and ADAS models will vehicles experience traditional of the faster I the through and the limitations sector. the of for their advancement the that Looking break years, is current even and with upcoming of automotive going methods. business riding the driving than to [indiscernible] AI happen technology, will going than AI will of industry. fundamentally impact that believe and will

safety and can driving location ADAS lower a the the speed [indiscernible] will experience non-HD scaled with or only to that path NGP, generalization of globally. The of and ADAS X is of which and is seamless roots AI capabilities reliant technology cost adoption developing market mass anywhere regardless strong models AI delivers of be and the combination experience, ADAS. has

by regardless owners version all taking XPeng Language] Since available next to X.X roots. smooth July city a AI-powered of has level XRS the been and experience to empowering [Foreign XX XMGP made anywhere

said to is for to deploy roads the ADAS models that autonomous all The technology than end-to-end on model first application offers public AI done. large users access nationwide. of AI all driving are easier We in

challenges and the limit safe lower solid of was upper testing a high extremely limit. is both closed loop an One ensure to how

our years us tackle experience with barriers ETC [indiscernible] a capabilities. experience parking challenges We're sets XNGP an gearing urban driving for up edge end-to-end integrating driving in users. AI and driving give to Our in these and extensive our safer, of ADAS such data human-like smart providing more stations gauge models, as

implement models to parking AI is slot Our offer the slot experience an and as level end-to-end next ADAS second step. goal to unparalleled our the parking to

[Foreign Language]

ADAS user excitingly, ADAS first competitive in will hardware a data further I'm more at XNGP's the AI auto allow high-level strengthening AI-powered price near XX,XXX and the fourth pool. to latest capabilities on buy our enjoy In the USD a range. This, next-generation on and on and most ADAS optimistic car quarter, in model improved company to XNGP form expanding high-quality we'll platform positive create ADAS China more in making will active offering base more models, Even the XPeng, cost will more technologies, a cycle affordability high-level industry. costs. turn, world's in the younger that the -- reducing future, users PX+ our the debut auto EV offer in deploy

embrace vehicles as from on plus at level Level traditional quickly cars structure, experience is X to takeover fuel to With several X provide experience by kilometers to electric aim over AI-powered in We will X equipped required have is are X world-class cost robotaxis other hundred offer we believe and hardware and ADAS software urban a ADAS Level mass words, years. equal we This quickly consumers production powered autonomous user groundbreaking. of smart second switch point. that past to just XNGP for AI X areas, In the just half an the which manual of our vehicles price EVs affordable driving going means XXXX. we

cutting-edge at in advancements our tenth next Galante annual AI in models, our technologies robotics, more and on share robotaxi details our I'll Tech October anniversary about Day other XX. week

Language] [Foreign

the a among USD this playing of year, in significant BEV mid sales more Chinese Starting faster above all is driving sales quarter, overseas XX,XXX second international first in for of from a entering BEVs ranked all our growth electric or strategy and both in and to growth. high-end period long-term XPeng In vehicles models markets product is priced export role brands.

and Israel crucial new Netherlands. energy, in is time same top GX in mid the of overseas total believe and globalization. more our in first accounted to that sales in large-sized achieve the SUV addition #X electric than for Norway, has For We the AI Denmark all us in for XPeng become our and to sales. class the to ranked Sweden history, XX% the high-quality X

of completed for overseas offering over-the-air China-made of OTA unprecedented international of August XOS an for OTA latest all our As market. rollout experience AI-powered XX, we our the customers,

has Our recognition gained product worldwide tech brand consumer strength. by unique leveraging our premium and

-- international version the the enter we very very, quarter, of initial for we As strength strong saw a XPeng momentum third orders GX. in overseas the

from begin version August, expect drive deliveries and Starting to we of left-hand right-hand the of drive GX.

established to XX over markets America. Australia As the countries more to and several source, We including of including second and Southeast the Middle in have of and overseas expanded U.K., XXXX, via July, dealer East our in countries cell right-hand drive half in we partners regions Europe, Asia. and enter Latin the presence plan XX

stores sales international branded XPeng of of number the the double to expect half we Also, second in XXXX.

maintain smart EVs our global next I enhancing high-end will couple years, of brand. sales leading the its momentum, strong anticipate Over business a to of growth as mid- overseas global reputation tech our and

[Foreign Language]

achieved EV on or Volkswagen Group have multiple with made our of [indiscernible] architecture technical a jointly agreement scope. corporation In Volkswagen's to strategic for year, year architecture master collaboration China our the we over vehicles Volkswagen of develop milestones with CMP produced MEB platform long-term July platform. expanded built significant and We signed cooperation locally in as we past this all industry-leading EV

XX deep equipped expected with jointly MEB platform all architecture. developed on equipped model this and production architecture vehicles Thanks the produced E/E the developed collaboration first mass to in EV XXXX, into X within the trust jointly to mutual go between teams, and built Beginning locally CMP be the will with the months. is

for of I'm partnership. China's winning global very will this the of that value and profound era scope and synergies further I changes strategic greater the believe us in to forward our and automotive cooperation of our combination the XPeng's create technology industry. and much in our technical [indiscernible] looking expanding partners strengthening strategic

[Foreign Language]

organization experiencing After that the learned go let waste rising September in past and glad each to the GX growth. AI over strategic us navigate that and didn't improved with them the made competitiveness and to and above XPeng's few crisis one. steady from changes every progress. sales We're I'm fluctuations years, fully rapid XXXX now launching position we we has decade our have significant we prepared This greatly of planning. next to for

revenue of anticipate XX.X% volume will range a in we quarter-over-quarter third total from increase As RMB launch XX%. representing production total representing project quarter quarter-over-quarter X.X the billion X.X we delivery our to XXXX, increase of that of to range XX.X%. XX.X% cycle, fall within of XX,XXX RMB to a enter quarter third the we Furthermore, that major to XX,XXX billion, will our our

[Foreign now XXXX. call that, performance turn over Mr. you, our VP for our With James quarter discuss of Wu I'll the of Finance, financial Language] to everyone. second Thank to the

Jiaming Wu

Xiaopeng. you, Thank

discussion my provide financial of in quarter of brief me today, let XXXX. otherwise second a stated. overview unless I'll the our Now RMB reference for results only

X.XX technical revenues increase total year-over-year of . The XX.X% Revenues of were increase were deliveries. billion with R&D XXXX, quarter others quarter-over-quarter XX% were and for technical XX.X% for X.XX second increased from Our from vehicle were the second related and X.XX to higher XXXX, quarter an increase XX.X% services quarter and increases year-over-year services of quarter-over-quarter. attributable the were for an to Volkswagen revenues increases XXXX, RMB of quarter-over-quarter. the XX.X% maintenance quarter-over-quarter. Group. of and second strategic of Revenues of year-over-year increase year-over-year The year-over-year an from of increase quarter-over-quarter representing an the collaboration billion sales XXX.X% to RMB billion of and mainly increase an and an representing from software higher mainly and services RMB due sales the platform and

Gross The X.X% X.X% The increase primarily the cost primarily XXXX the for was Vehicle first period reduction the cost negative quarter-over-quarter the same XXXX. first reduction. and of XXXX quarter period X.X% the the compared quarter the improvement the negative same and XXXX in attributable attributable of for of with XXXX. for compared second margin to second with was XXXX for increase of XX% of mix. margin and was for X.X% was product for the of quarter XX.X% quarter year-over-year to

quarter increases new second The quarter-over-quarter. X.X% for quarter of of XXXX, year-over-year year-over-year as to and of SG&A increase of R&D of expenses the X.X% representing company X.XX due XXXX, to higher quarter-over-quarter to related an XX.X% the were and stores RMB of X.X% expenses to billion were mainly an commission expenses due expanded an the quarter-over-quarter. increase growth. increase franchise support development product quarter-over-quarter future representing expenses. second year-over-year mainly and The and marketing an increase higher and the advertising portfolio of increases were RMB X.XX were models vehicle billion and its higher to for year-over-year the

loss with a same of quarter of compared XXXX for for operations second from for the was RMB the billion X.XX X.X the the the X.XX first of result quarter RMB first RMB the period same X.XX Net billion with quarter quarter billion XXXX billion loss billion As RMB for XXXX. XXXX for of compared of of and for X.XX period of XXXX. RMB the XXXX and foregoing, second X.XX was billion RMB

listeners concludes the prepared earnings details more press to our questions. to to June quarter ahead. of We'll financial refer had cash of open I our call on and results. of deposits equivalents, of cash, As RMB please investments the be restricted now This XX, for encourage cash XXXX second XX.X release billion. would To the go our XXXX, time company and call, Operator, our remarks. length mindful in short-term our earnings total

Operator

comes from Stanley. Hsiao with first Morgan [Operator Instructions] Tim Your question

Tim Hsiao

about [Foreign sales because suggest delivery multi first experienced the high PX+ XX peak. of of like quarter a that XX,XXX. the I company models September back new [indiscernible] could Language] here my sales in of So be around the question volume new together upcoming with to the to the third momentum previous This, could guidance is to XX,XXX

new in offer sales new for like models sure light of this the [indiscernible] like momentum However, and relatively time year. last the launched the of the models momentum How PX+. upcoming MXX -- models

my question. first So that's

He Xiaopeng

[Foreign Language]

much Thank for you question. so the

this is actually well. of one as facing challenges the biggest Now ourselves

office, of for office, up [indiscernible] for have meaning I steady growth we myself XPeng, my a hang that wall For I the aiming my on forward. going are mean in actually

easier honestly, in done, environment. that goals said do it's it's challenging to than Now achieve kind those a and very of and competitive such

we to expect competition seen year, next more actually market than recently. even into have be the what brutal Going we

of and chain, done And supply management platform-based our and manufacturing it transformation for and And it OTA we a and MXX for adopting models and example, to when customer the lot the also [indiscernible] enhancing of regarding the versions PX+. safety comes manufacturing our and the quality have experience organization, for monthly aims comes target the to the of our also new when everything.

overhaul an marketing and did sales on also system. our We

where a to we guidance are those development our of growth for very sales. achieve All steady give aiming and long-term the preparation future forward, do and going

future facing competitive We -- taking are consideration doing XX-month not rolling into only forecast the landscape. the

how and iteration take to models consideration in the of into new also We the our accommodate them favorite versions environment. competitive and

before and and more implement now, to about outcome. the year order years X right the achieve to to maximum are in how we and our relative So how those beforehand, definitely confident much our really plans forecast targets quarterly to meet

Unknown Executive

Brian. is this Tim,

Let here. just couple a add points me of

I delivery a other record you catalyst, think is volume are going the will First think of of month of delivery. achieve right, assume there quarter end probably high the our of be guidance the XX,XXX third actually, the aware. when I likely we that, point we we that gave actually which all, the you're -- historically. hit do to number of guidance, be at high sort To per should

One for is start-ups. preparation just September very record will mentioned, first that delivery terms likely well [indiscernible] encouraged the think, the debut Xiaopeng EV delivery as confident are also made fastest in the We that see given we models by achieve what by reception. order indicative that months EV in starting all [indiscernible] and we're in the of as momentum, we the very

we think record I for will the Mona. set hopefully

the I as delivery number includes emphasize volume to think of well. also also I growth our significant Secondly, want that delivery overseas

which will that the in also see that from in and us our give set third We diversifies the as second that can anticipate overseas quarter achievable. in the objectives overseas above the order delivery be delivery will probably XX%. volume quarter, XX% further intake the third overall as delivery confidence quarter fourth As the exceeded you for quarter we be well

Tim Hsiao

has and about Language] My national-wide further question enhanced faster The technology is of much large models than [Foreign XNGP. expense and in or and second rollout XNGP constant the AI smart ADAS. authorities [indiscernible] high-level systematic driving investment

constant to Will second real it any following into a there do or metric [indiscernible] translate when could new a question. and return to the translate massive experience car into monitor meaningful in can of be you when we expect such and So upside peer investment However, comes to quarters? sales? that's competitors barrier a investments, my

He Xiaopeng

Language] [Foreign

your Since for aspects. you we've very our the question. Thank rollout version of X.X, exciting data, lot of and collected X encouraging a including

least some test and regions. The ADAS we used will use how shops, of high-level ADAS across the from available areas rate thing have you capabilities, increase and allow in and XNGP at to now, before driving of is now, XX% first the our consumers in first some option our which penetration right rollout of dealer capaability the all stores one to X.X. our hand also our can made encounter of that all shops challenges is the And is right our of dealer rate to second is. in And freely this experience capable using

And only right or challenges. Chinese do models among XPeng ours also is AI all implementers, but now, claim we competitors the moving end that of goal, other towards peers although end-to-end makers EV multiple they face that actual are

limit increase our we end-to-end and The adoption also need ADAS is in AI of models, as have lot capabilities technology a well of of we that changes upper that reform, which the a we with of first secure to one requires that the solid the bottom in capability architecture. our as implemented

base human-like of first a in where is small enhance kind able areas, locations though capability to a also better around this able locations is our And a adopting ADAS even we to turning a produce are country. cities we year different setbacks multiple also also that capability. not and a experience do end-to-end for our we implement trend all, for previously, might of the wider other models outcome and of right driving it these definitely range may to technological rule and But experience the range do driving that, AI model provide believe the or small routes and of routes in is we for now, to challenge some point be across now. And roll out

great it And able in reduction a future, comprehensive a on theologically comes PX+, architecture which we is industry-leading that forward, starting this the expect more this are us wider driven really using affordable from to ADAS upgrade consumer, to to can capability offer platform allow to outcome commercialization. of version, of to going ADAS cost when see outcome improve a the And range technological our that we which can believe when near to will we that means great a capability high-end

Tim Hsiao

a Thanks Great. and . take off details sharing the looking sales year. to lot the forward Thank the meaningful those rest you. throughout for of

Operator

America. of Your next Ming-Hsun question Bank Lee comes from with

Ming-Hsun Lee

[Foreign Language]

My your is strategy. question related reduction first to cost

So will third future? question more going right related now, think Volkswagen, you you can quarter to short-term cost usage do gross reduce And what with your you spend. forward? achieve of have So you [indiscernible] the reduction joint a procurement the in in area margin

also Mona. So but targeted negative the export sales and include from a factors more is sales grow more lot, volume factor

third how of expect So the we margin? do quarter the trend gross

He Xiaopeng

Thank you [Foreign your Language] question. right. All for

prioritize really crucial success. considering Now company's XPeng for are used our without very of the development other aspects, technology which also to

our model and of the demand our going meet order focus going capability. competition are whole from now, half commercialization second of our well. market doing the reform technology in to both more the starting as we're and business products the second from this this restructuring of have translation starting to Right the that and more really we're well. year, market year, But to Now of see also on we half

also cost Cost top well. it. driven we as restrictions technology, reduction big and have also is by supply with partnership of aspect of On that are chain our [indiscernible] strategic Volkswagen by our our a that, by

going of when it well. actually to into can the news our XXXX quarter-over-quarter 'XX, and So of you in good expect improvement and comes year half also see second lot a to this as

that we are margin has the of So the than become a its superior XPeng of peers. the confident end can at more day, that a overall, GP company rest

Unknown Executive

generally So second Ming trend second on I'll instead half. being about your speak margin on the QX, regarding the question just of specific

right, So second there you're things place to take the going half. that's couple are a in of

terms As revenues as the we most going likely up. as well cost. the Volkswagen. will the you In which recognize significant out will allocations also is meantime, likely mentioned, EA DNA to some help manufacturing QX, start the improving percentage we will collaboration volume, in volume of and to manufacturing export to [indiscernible] from see go with Starting growth

new introduce side, coming model volume high-volume other the mentioned, as as model thing We and there's we which double a will other out from platform digits. first Mona, be to be achieve expect PX+ you cost the healthy we QX, to the we into that expect On have earlier. margin incremental the the reduction come our that do very communicated which of to the be into PX+,

maintained I'd to see in the expect perspective, stable say you overall low mid- be at a all So quarter. the second Thanks and in as all, from teens trend we to margin

Ming-Hsun Lee

[Foreign vision would to the through the this for first [indiscernible] the you in [indiscernible] pure improve progress technology. use be what you So to your PX+ solution. capability Language] [indiscernible] level driving

He Xiaopeng

first itself I I say allow conferences and be XXXX tuned. -- cost would on reduce disclosed can also the map is [indiscernible] definition Well, to in Language] without high significantly. Day, to all, please Tech already question, on your stay [indiscernible] for on relying actually, of what more details that us product regarding that now say that and census But launch our itself [Foreign our future

enhance events. greatly with our in please the interested, well. other ADAS And technological more you're of on adoption Again, future allow based vision the this if us tuned stay AI approach as the our for capability models end-to-end hand, to using details

Operator

question comes Deutsche Bank. Wang from with next Your Bin

Bin Wang

can the XX,XXX. high [Foreign third September, Language] we units the XX,XXX the end more the in achieve achieve of which quarter, in [indiscernible] than means

if end. products, by in we So high September, provide the how much Mona achieve specifically can a you breakdown

Gui Hongdi

delivery moment, coming delivery is a provide Ben, specific EV very for record imagine. we anticipate new as of do EV for We of before, would I delivery you achieve said can in we players say, or by not breakdown the mix Mona September. But startup the Brian. I model likely for as At months. this the strong

So to that record. we hope achieve .

consists will overseas, Secondly GX a be and significant which of from mostly percentage GX. is also it that

As you know, month GX delivery that is starting month. this and next

that mean these from from there's lineup. will So also mainstream contribution our models

think So other details provide than I on that, will don't mix. we more the any

Bin Wang

My question is is [Foreign new the about second one Language] products.

You mentioned very similar cycle. Can you product elaborate a next little for bit about year. the

Gui Hongdi

on again, as a Bin, to new guidance are model able not year updated specific next of models. provide this as call, we on launches number or well

as I very quarter said that But a think a product in well, information we is we this later strong we say, will fourth stage. that as probably can cycle. what anticipate before provide we

will many is [indiscernible] launched this it say, than So this I what be year more many, we would has year. that

revised more X models next vehicles models or new updated for and year, this of definitely as So of number years. a than

Operator

question next with from comes Your Paul Gong UBS.

Paul Gong

competition regarding first do do in glad these it. overcome we are extra in markets you other my How among question outlook. How the At even the we for is the to company protectionism including And seeing rising also is however, the [indiscernible] Chinese exports, [Foreign DMs, the the the you are export upcoming tariff. So seeing escalating. rising foresee challenges? Language] pushing the we're is see stage, this

Gui Hongdi

question. Paul, this Very good Brian again. is

but immense, lot the is of challenges there's opportunity global a Obviously, right. you're also along think way. I

of that I cetera. premium say, tariff what those in the a sort very would the points. market, well our markets, et noticed products brand. as as One so updates far European as global we in But Europe other also EV product positioning few have been launching is successfully We

sale GX that some price,of of well China, markets, is we global comparable can the can look already, competitors available you better premium priced and in faced see as you that more at are achieve which today than higher a actually actually means markets. in for which actually position global we our If GX we

as deal contribution still using tariffs. those partners, given by marginal obviously good local I with I we the can collaborative achieve, from efforts that say, specifically, relationship pricing, team, a to But the Secondly in as think with we mentioned, Europe, I is have our as sales. would the well

So the the in we're with that actually think, which dealing moment, started, I back already regime at July.

been in have the X.X already. we this last dealing So months

And I is parts see the launching as world. think we actually we we Middle speak will month see including market be in And significant of Europe, models Southeast then our for we looking growth right-hand East, outside that of Asia, the other which and Israel, month. driving opportunities this also also, huge next opportunities

contributions can with more world, positioning as a I as we are better, as a additional global confident and of profit we distribution product extensive well product launch channels as our from So sort building say, premium relationship as would the of the anticipate that globally operations. achieve well the as we around volume well some of

Bin Wang

mentioned markets ago, volume robotaxi. the understand little the just you a industry leader has XXXX. had bit in but few modified. . of robotaxi there your are robotaxi overseas regarding half I of that the to But as in similar big that listen second models achieve the is for to I effect question the recall second you to not a want years also been my robotaxi, once why operation in a operation. moment was versus So an hope Language] autonomous produced a driving, XPeng guys fan you you subsequently, it [Foreign plan just

He Xiaopeng

Language] [Foreign

is different speaking, This end-to-end technological is approach right what development, globally not only adopt now, but good AI comes which the China is Actually, quite the robotaxi it when from we in a very to architecture. question. models

target or focus between our focus market on area that right now define experience robotaxi. offering the safe domain is of now kind region, driving to a within a in small domain full good Now and offer the differences all to of versus is experience or focus human-like robotaxi whereas the customer definitely our right

of And is of other is cost our penetration on operating this well, comes to and cost when robotaxi target regulation from now, really rate robotaxi the still experience X now #X thing The we that for industry right customer and previous do also priority, technology. the apart vehicles, developers really based the experience. [indiscernible] namely that these balance aspects of it majority right the adoption and not mass understand

[Foreign Language]

several Now, when robotaxis. are things to there that comment we can it on comes

but we future is developing capability very considering from for of ADAS the definitely or First different LX are very, all, experience. robotaxi, this the

in is of or vehicle The considering we're thing with products in vehicles the rather not operators operation with but involving the producing or on ourselves that the vehicles, speaking. focusing high-quality mobility robotaxi second future, robotaxi, partnership globally

quite to that that Robotaxi, thing is of consideration the when development pure actually more is differentiation of has kind different for into of our it comes another it's well. and of of or Robotech, our XPeng share the kinds want here in in lot the everyday we're We've future time a way this mobility. of And in thoughts put robotaxi to Thank use regard. going ADAS and future, complement different and you. of when thought I a allows, from And as unique definitely to different

Operator

. Hou from question next with Goldman comes Tina Sachs. Your

Tina Hou

mainly regarding [Foreign because Language] preparation LIDAR. is bottleneck production first think MXX supply My I to with previously, related our question Mona the was for the

LIDAR. have don't we MXX, with However,

have should much this a faster ramp So up.

for in much how wondering are just months? few preparing the So we next

regarding is R&D Second our expense. question

our year's half So billion. to tracking first below at X.X just seasonality, for looking seems previously. half, like But it's X X tracking and last at it second guided we RMB billion half billion looking first

R&D into spending half. we the have second like So any wondering added whether

Unknown Executive

we've your what are capacity, the to On seen we've past. production we regard James. have and both in great to Tina, of obviously, this Mona These lessons GX experienced XX. with questions. learned. Launches I'll is try answer

time what ahead preparing the previous Mona have So is the preparation way have versus cases. of we production we done started

the key prepare to and plans we some from we've have components, for we constraints issues in sufficient have So set that of experienced anticipated past. supply the solutions those the

So far, supply we and seen chain with regard signs of to haven't any issues production capacity. our

to delivery achieve planned communicated So continue we earlier. have will as expect we production and the we

cycle year. design pretty yes, look engineering into lot question engineering from has expense, in. first development and as and relatively a with to our earlier, to about product you last product entering a second regard flat Your already it's if and the we at are of the comparable expenses, But we kicked mentioned heavy the expenses engineering half,

we of the the year. ramp expenses So in up engineering half to second expect the

you. our For year terms of of the for expense. remain full Thank earlier X still about we engineering RMB guidance in full the year, billion

Operator

Your Pingyue next from with Citic question Wu Securities. comes

Pingyue Wu

[Foreign But my the people is, question Language] see see first good in time the person. this to very actually first only quality. went I So and it [indiscernible] of when they was quality car in fill

action to we do make see So sales [indiscernible]. the car more done have to less in people

He Xiaopeng

Language] [Foreign

marketing, technical when different Well, functional indeed. comes affordable Yes, is it and approaches, performance-oriented cars between sales to quite versus or cars. it

to your comes the Mona, beginning see unprecedented reception this car very responses to to and good capability know it rollout with mentioned static comes its comparable is. when most our received other consumers, of and you the definitely, superior it it again, our since and when across question, this a class, in stores, especially have August Now the to from the from -- is you of more year, construction cars Since how what of in car to of it capabilities. very fill which different resonate we've dynamic a

customers and this in So will MXX's that lot not comparable believe GX also to later online after it a sales well test we even of for be period. to themselves. order than do drive as sales of the but superior same sales to going we're And more product encourage performance more of activities, official off-line our a do lot to launch we month, seating only promotional plan

Language] [Foreign

And our of thing MXX once it it that confident because people delivered, officially will comes believe dealer We which the across like capabilities add also mouth serve to and of become word favor, and is are of and this shops in to more capability. our allow would and to also that will it static the when very dynamic drive to actually country. launched production test one is that interested we performance in I car

promoting to lot and sales it comes vehicles affordable And again, kind possibilities for this there of are of marketing when the market. a

Pingyue Wu

And second evaluate do from actually how lot ability is after My X marketing we Language] and we years, right do [Foreign reform of XXXX. our in question a now. sales

He Xiaopeng

Language] [Foreign

business, without services. stage we've competitiveness. our products system, our first launch, not ago, to our the technological also whole only we development, success we think our you and we years when in then it and comes the of to customer especially planning marketing right but comes Two where marketing for reform, for sales down well. Thank our the planning, And question. of I as when also product started started break sales aspects different system the now, it And our have and achieved we when actually improvement it

only what our it previously, also our QX see it's you marketing of including to how And and by will QX, into performance, capabilities, a sales which from we and but customer comprehensive mentioned sales we and not driven our by services as launch well. also year, product this begin prioritize development all-rounded translates

right some sales capabilities, cities, to Tier we new management our Tier cetera. serve car X, have to also better and Now also X, Tier developing X [indiscernible] the insurance, when strategies our customers across management on after we comes now, implemented focus across et it

staff We on also well. our sales working their training capability as efficiency to focus improve overall and

So future very in it you. globally of auto-making target in speaking, our believe Thank are one top marketing but comes confident of and China China development, our the the in midterm, the that has industry players sales only to not when also we we capability. our become

Operator

Your HSBC. Ding next comes question Yuqian with from

Yuqian Ding

gross [Foreign Language] So my about first question profit is margin. the

gross part, also teen clarify, over the margin the mean the half positive mix And margin margin. especially group increasing down also by second the the least they the average profitability bit low wholesale domestic roughly would will us coming If could in said software product of the that management stable. down margin the to of little absorbed benefit specific, and from discount. coming at channel the support also be what's the paper relatively level percent year, overseas mid- largely Does of help Brian the reference can part impact there. and So to the bits versus us give to a break not

Unknown Executive

James. I'll is This Yes. try to answer your question.

we on expanding First, are as Brian pretty basis a global rapidly. mentioned,

volume countries. sales, When when different it's the it model, the half. is in the different margin. both would expect to business good in as model. at comes sales well conclusion, quite countries, first as direct compared we you half second distribution of So increasing overseas, overseas And healthy, volume to dealership total of regard we With percentage right, including terms as overseas look in different models margin in to model have markets, different it as well absolute

different to in and and company. understand across it's But say, our helping I from income and line to overall the it margin sum, us profitability way All the improve models. profit good, quite would is overseas bottom right. the of So to the business, quite variable different contribution these for impact or margin a perspective is

additional as regard regarding will the the didn't as will in were including to for increase income I trend into to a margin likely clarify wanted question was and play software different terms domestic, overseas VW of second changes come half, collaboration and new models refer we we higher that earlier PX+. well the from in the your mix second volume to that with about half. in Mona vehicle the just half. Then the of margin What talking components second second variety to really

and a moderate from as seen overall, first will the to the vehicle I tens, what growth half. margin low margin to compared we anticipating in So but in mid- stable are mentioned, we've maintain perspective,

Yuqian Ding

autonomous is [Foreign the Language] really driving about differentiation. So the second question

development is will it data stage terms everyone about engineering technology curve and technology, capability that flattish So the industry is down. is the autonomous Everyone But running the driving get running into loop development the the powers talking in that. of processing slope. big developing to leveraging

service, can the driving do really sticking is but everyone one So no autonomous out.

you how that getting are we and to help or year or breakout we're singularity moment, more model. could vehicle envision so the of because technologies getting [indiscernible] the Does selling finding talking is we're So technology the mean Thank if the about because us happen? is maturing next you. how -- diversified we're could better, revenue

He Xiaopeng

Language] [Foreign

try for do will Well, terms but language, your I'll to best. be or it question challenging me my to very without involving to technical respond

rule-based technological ADAS was high-definition maps architecture adopted develop is and their First also that the of widely relying on approach model all, all-knowing or a driving so-called ADAS for to previous capability. autonomous industry perspective,

is that cases have actually perfect. examine is corner approach one. Now driving them experience experience, by the the you numerous main have the to And that customer not one itself you challenge for actually where

AI also turn now a not robotic, it's kilometers available whereas country. changes to from late our kind approach the human-like experienced and excellent For market high-quality allow comes example, excellent, areas driving at their looks approach, of is vehicles actually the learn most AI very, across habits driver, very end-to-end about ADAS driving right [indiscernible] to XX and of driver on on the like hour making to XX here, the want focus models I to human-like experience, yourself different or of or someone us it and the and performance when the the per driving

of also it's serving not corner different cases because based. the they obviously, But encountered rule challenge

not rule-based at maybe rule before, going For road, to that they've state whereas something to a approach, if [indiscernible] encounter you it's not animals, for there in avoid have on there it the that example, is that learned those straight try example, animals. a hitting it's straight to because avoid you

believe of based lot and of development and previous a are your than but to model there end-to-end capabilities I the cons on different hope, answered this going significant a AI question. pros I rule-based So is lot quicker the approaches, approach. I be the more

Operator

like question-and-answer our back conclude to over closing does That session. company the turn call to for the remarks. I'd

Unknown Executive

today. Thank once again you for joining us

for XPeng Financial questions, contact website to If team our information the you on provided have you. feel about contact the further Investor please Communications. Thank Relations free XPeng's

Operator

This concludes today's call. conference

Thank lines. your disconnect you. now may You

XPeng (XPEV) 20 Aug 242024 Q2 Earnings call transcript