Sharp drop in Xpeng's deliveries in the first quarter of the year

The Chinese electric vehicle manufacturer Xpeng closed the first quarter of 2026 with clearly negative results. The company delivered 62,682 vehicles, representing a drop of approximately one third compared with the same period last year. This decline directly affected revenue, which reached 13,030 million yuan -around 1,650 million euros at the current exchange rate-. This is 17.6 percent less than in the first quarter of 2025, and also represents a drop of 41.4 percent compared with the figure recorded in the fourth quarter of last year.

Revenue from vehicle sales, which remain Xpeng’s main source of income, totalled 11 billion yuan, with a year-on-year decline of 23.5 percent. This situation contrasts with the 94,008 units delivered in the first quarter of 2025 and the 116,249 in the fourth quarter, when sales in China traditionally accelerate before the end of the year.

Part of this sharp drop is explained by seasonal factors. In China, the first quarter is usually weaker due to the Chinese New Year celebrations, a pattern that has also been observed at competitors such as NIO. To make matters worse, the reduction of state subsidies for electric vehicles at the beginning of the year also negatively affected demand. In any case, these poor figures recorded by Xpeng cannot be blamed solely on external factors, and it seems clear that the Chinese manufacturer is also facing specific internal challenges.

One step forward, one step back

Not everything is negative, however, as revenue from services and other activities grew 41.2 percent year-on-year, to 2,030 million yuan. This increase was mainly due to technical research and development services, driven by the strategic alliance with Volkswagen, which holds a 5 percent stake in the company and has already launched two models together with Xpeng: the ID. Unyx 08 and the ID. Unyx 07.

Despite everything, the company posted net losses of 1,780 million yuan (around 225 million euros), compared with losses of 660 million the previous year and the profit obtained in the fourth quarter of 2025.

These poor results have not, however, brought pessimism to Xpeng’s management, who have high hopes of reversing this situation with the launch of the brand’s new flagship, the Xpeng GX SUV. Presented in February and launched on the market on May 20, this model, with a design inspired by the Range Rover, incorporates a Steer-by-Wire steering system from Bosch and also has a robotaxi version.

“The successful launch of the GX marks the beginning of a new stage. This year we will launch four new models that will allow us to resume a solid growth trajectory in sales.”