XPeng Motors Reports Record Deliveries and Revenue Growth in Q3 2025
On January 6, 2026, XPeng Motors (NASDAQ: JG) announced remarkable growth in its third-quarter 2025 performance, achieving a record delivery of 116,007 vehicles. This figure marks a substantial increase of 149.3% year-over-year (YoY) and 12.4% quarter-over-quarter (QoQ). Despite this impressive growth, the company’s high dependence on its core models, namely the MONA M03 and P7+, which together accounted for over 70% of total sales, raises potential risks for the future.
1. Strong Q3 Results Demonstrate Surging Sales
In Q3 2025, XPeng reported a revenue of RMB 20.38 billion, reflecting a 101.8% increase compared to the previous year. The company's net loss narrowed to RMB 0.38 billion, improving from RMB 0.48 billion in Q2 and RMB 1.81 billion in Q3 2024. This decline in losses is attributed to a significant rise in sales volume, with vehicle sales revenue reaching RMB 18.05 billion, up 105.3% YoY, encompassing 88.6% of total revenue.
Breaking down the sales figures, in July, XPeng sold 36,717 vehicles (up 229% YoY), August sales reached 37,709 (up 169% YoY), and September saw deliveries of 41,581 vehicles (up 95% YoY). By the end of October, year-to-date sales surpassed 355,000, achieving the annual target of 350,000 units ahead of schedule.
2. Rising App Popularity Signals Future Demand
XPeng’s sales momentum has also positively impacted its mobile application, resulting in a significant increase in app installs. This growth indicates a strengthening of user engagement, laying a solid foundation for potential repeat purchases in the future.
3. Optimizing Product Portfolio for Competitive Advantage
To enhance its market position, XPeng has been proactively optimizing its product portfolio. By streamlining its Stock Keeping Units (SKUs) and focusing on key models, the company has created a distinctly tiered product lineup that includes entry-level, mainstream, and premium offerings. The MONA M03, priced around RMB 150,000, is equipped with over 20 intelligent perception hardware components, making advanced urban driving technology more accessible.
In the RMB 200,000 segment, the P7+ model boasts superior smart cockpit features and an extensive driving range. It includes a full-scenario automated parking system, characterized by its efficient design to simplify the parking process. Enhanced with state-of-the-art human-machine interaction technology, the smart cockpit offers a larger high-definition display and a more interactive app ecosystem, reinforcing XPeng's image as a leading intelligent driving brand.
4. Increased R&D Investment Enhances Technological Edge
XPeng has significantly boosted its investment in research and development, with R&D expenses emerging as a priority. In Q3 2025, R&D expenditures rose to RMB 2.43 billion, reflecting a 48.7% increase from the previous year. The company has filed over 3,000 patents related to intelligent driving technology, covering various areas like sensor technology and algorithm optimization.
Notable advancements include the in-house developed XNGP full-scenario intelligent Advanced Driver Assistance System (ADAS), which has a 60% penetration rate in Q3 2025, showcasing XPeng’s commitment to producing safer and more efficient driving solutions.
5. Addressing Risks from Core Model Dependence
Despite its progress, XPeng faces risks from an overreliance on a limited number of core models. The MONA M03 and P7+ are crucial for the company’s growth, accounting for more than 70% of its deliveries. Should market dynamics shift or competitors introduce compelling alternatives, both models could see diminished sales, which may adversely affect XPeng’s overall performance.
To mitigate this risk, XPeng is encouraged to accelerate the introduction of new models in 2025, diversify its offerings, and enhance the resilience of its product strategy to adapt to changing consumer demands.
6. Financial Outlook for Q4 2025
Looking ahead, XPeng anticipates delivering between 125,000 and 132,000 vehicles in Q4 2025. According to projections from Aurora Mobile - MoonFox, XPeng's revenue is expected to increase by 36.6% YoY, reaching approximately RMB 22 billion. The company aims to break even in this quarter, marking a significant milestone in its financial recovery.
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