Q3 2022, Xpeng delivered 29,570 vehicles, up 15% YoY. The cumulative delivery in the first three quarters of this year is 98,553, up 75% YoY.
To be honest, we are experiencing a challenging period in achieving our long-term strategic goals. We have conducted profound strategic review and organizational restructuring.
The competition in the intelligent electric vehicle market is a marathon race. I believe that the winner in the long run will be the one who possesses core technology and comprehensive capabilities, and who can achieve large-scale revenue in both hardware and software.
Mr. He XPeng said,
We are accelerating the development of the next-generation full-scenario intelligent driving assistance product XNGP, and plan to launch the main functions in Q3 2023, and to support at least dozens of cities.
XNGP will be the turning point for intelligent driving assistance software to become a high-frequency and rigid demand product. We are also pleased to see that a considerable proportion of users in the current G9 orders have chosen the Max version which supports XNGP despite the fact that XNGP has not yet been OTA. We look forward to expanding the cost-effective XNGP to more models next year.
Moreover, we believe that the hardware cost of XNGP will continue to decrease with technological progress and supply chain maturity and will be significantly lower than that of our peers. Driven by product reputation and cost, we believe XNGP will accelerate the spread to a vast number of users across the country.
On October 31, the Xpeng G9 obtained the qualification for road testing of intelligent connected vehicles in Guangzhou, which is the first time a production vehicle with no modifications has obtained this qualification in China. Our research and development for both driving assistance and Robotaxi are advancing in parallel, and we plan to achieve unmanned driving with cost-controlled production vehicles by feeding back the data and capability in a closed loop.
While we continue to promote the landing of research and development results in intelligent and electric vehicle technologies, we firmly believe that our independently developed industry-leading technology has enormous user value and business value for the company. We maintain an open attitude towards strategic and technological cooperation worldwide.
From the perspective of cash flow, our current cash on hand exceeds RMB 40 billion.
We increasingly feel that auto companies should not only consider prosperity, but also how to grow steadily in adversity. We will focus on strengthening cost control and improving operational efficiency in the coming quarters, while streamlining investment projects.
By focusing on research and development directions and sharing more platform modules among vehicle models, we plan to launch more new products with lower R&D investment. With the help of a stronger product portfolio and internal system adjustment, sales efficiency will also be greatly improved. In addition, due to the layout of previous production capacity, our capital expenditure needs will have a significant decline in the next few years compared to this year.
Therefore, we believe that the current cash level of nearly 40 billion RMB is sufficient to support our business development needs over the next few years. With the increase in our product sales, our cash flow situation will also improve significantly.
Looking ahead to the fourth quarter, we will work hard to overcome the adverse effects of the epidemic and make internal adjustments for long-term development.
Due to the impact of the G9 production line ramp-up, the delivery volume in November is expected to be no less than 5800 vehicles. We are working to solve the problem and deliver our accumulated orders more quickly. In December, our delivery volume will rebound significantly compared to the previous month. We expect the total delivery quantity in the fourth quarter of 2022 to be about 20,000 to 21,000 vehicles, and the revenue is expected to be about 4.8-5.1 billion RMB.
We will accelerate the pace of internal organizational transformation and management improvement in the future quarters, and we are confident of achieving the goal of being in the top camp of the intelligent automobile industry in the medium and long term.
To strengthen product competitiveness and increase sales, the management will listen more effectively to user needs, simplify product configurations, and enhance the software and hardware attractiveness of our products.
Therefore, XPeng Motors is deeply promoting organizational change. He XPeng will focus more on the strategic planning and R&D of XPeng Motors, promote organizational change and upgrading, and significantly reduce his personal involvement in ecological enterprises.
Xia Heng, co-founder and president of XPeng Motors, will also resign from the executive director position of the board, and focus more on product development.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.