China EV Maker XPeng Says Covid Affecting Supply Chain; Deliveries Drop In April From March

XPeng, one of China’s largest electric vehicle makers, said on Sunday it delivered fewer cars in April than March and warned that the Covid pandemic was affecting the industry supply chain.

XPeng, headquartered in the southern Chinese city of Guangzhou, delivered 9,002 cars in April, an increase of 75% from a year earlier amid continued popularity of EVs in the world’s largest auto market. However, deliveries last month fell by 41% from the 15,414 figure it reported for March.

XPeng “has been and is continuing to actively navigate through the Covid situation, which in turn is affecting the overall supply chain, manufacturing and transportation of automobiles in China,” the company said in a statement. “April deliveries reflect the company’s relentless effort to mitigate the current conditions with support from various authorities and industry partners.”

XPeng’s deliveries in the first four months of the year reached 43,563 units, a 136% increase year-over-year, the company said in the statement.

Other large EV makers reported drops in April from March: NIO deliveries were 5,074 compared with 9,985, and Li Auto’s plunged to 4,167 from 11,034.

Business in Shanghai, a major global manufacturing hub, has been hit badly by weeks-long Covid lockdowns. Beijing has also been hurt by quarantines in April (see related story here). XPeng’s U.S.-traded shares have lost more than half of their value since January; they closed at $24.61 on Friday.

 

XPeng CEO He Xiaopeng is worth $4.3 billion on the Forbes Real-Time Billionaires List. XPeng’s investors include Alibaba, which holds an 11% stake, along with funds associated with IDG and 5Y Capital.