XPENG Releases 2022 Q4 and Full-Year Financial Results; Volkswagen ID.2 Debuts; Lynk & Co 08 Exterior Revealed | E-Week Highlights
01 Weekly Index
02Weekly Highlights
XPENG Releases Q4 and Full-Year 2022 Financial Report: The Darkest Hour Before Dawn?
Profitability Data
XPENG reported full-year revenue of RMB 26.86 billion, a year-on-year increase of 28%, with vehicle sales revenue at RMB 24.84 billion, up 23.9% year-on-year; fourth-quarter revenue was RMB 5.14 billion, down 39.9% year-on-year and 24.7% quarter-on-quarter; of which vehicle sales revenue was RMB 4.66 billion, down 43.1% year-on-year and 25.3% quarter-on-quarter;
Total gross profit for the year was RMB 3.088 billion, a year-on-year increase of 15.09%. The fourth-quarter total gross profit was RMB 445 million, a year-on-year decrease of 56.5% and a quarter-on-quarter decrease of 51.8%;
The overall gross margin for the full year reached 11.5%, a year-over-year decline of 1%; the fourth-quarter overall gross margin reached 8.7%, compared to 13.5% in the previous quarter, with a year-over-year decline of 3.3% and a quarter-over-quarter drop of 4.8%;
The gross margin per vehicle for the full year reached 9.4%, a year-over-year decline of 2.1 percentage points; in the fourth quarter, the gross margin per vehicle was 5.7%, down 5.2% year-over-year and 5.9% quarter-over-quarter from the previous quarter's 13.5%;
The net loss for the year was RMB 9.14 billion, an increase of 88.06% compared to RMB 4.86 billion last year; the net loss in the fourth quarter was RMB 2.36 billion, up 83.4% year-on-year and down 0.6% from the previous quarter.
Cash data
As of December 31, 2022, the company's cash reserves stood at RMB 38.25 billion, a year-over-year decline of 13.83% from RMB 43.54 billion at the end of 2021; among these, cash and cash equivalents amounted to RMB 14.607 billion, representing a year-over-year increase of 38.2% from RMB 27.85 billion in the previous year.
Free cash flow for the year was RMB 106 million, down significantly by approximately 473.97% from RMB 610 million last year.
Other Data
XPENG's full-year R&D investment reached RMB 5.21 billion, a year-over-year increase of 21.1%; fourth-quarter R&D investment was RMB 1.23 billion, down 18% year-over-year and 21.8% quarter-over-quarter.
Total deliveries for 2022 were 120,757 units, up 23.0% year-over-year. The P7 delivered 63,396 units (up 17.8% year-over-year); the G3i delivered 50,988 units (up 30.4% year-over-year); and the G9 delivered 6,373 units.
From September 2022 to January 2023, XPENG only exceeded ten thousand units in deliveries in December. In other months, sales generally hovered around five thousand to six thousand units.
Quick Take:
2022 was undoubtedly a difficult year for XPENG. Pressure from competitors and prolonged pandemic impacts contributed to less-than-ideal financial results. The underwhelming launch of the G9 also significantly affected the company.
Fortunately, XPENG restructured its organization starting in the fourth quarter. With the release of the P7i, the company appears to be moving in a positive direction.
Volkswagen ID.2 all Debuts
On March 16, Volkswagen unveiled the ID.2 all concept car, positioned as an A0-segment pure electric vehicle. It is also the first product based on the MEB Entry platform (a front-wheel-drive platform derived from the MEB architecture), with an official price of less than EUR 25,000 (approximately RMB 180,000).
The positioning of the Volkswagen ID.2 all is more entry-level than the currently available ID.3. Its dimensions are 4,050 × 1,812 × 1,530 mm in length, width, and height, with a wheelbase of 2,600 mm. The overall size is very similar to Volkswagen’s compact Polo; in the domestic market, it would directly compete with the Haitun.
The design language of the ID.2 all differs significantly from the current ID.3/4/6 lineup, resembling instead the styling of the current Golf 8. Official sources stated that the C-pillar design on the side is inspired by the more classic Golf, combined with 225/40 R20 wheels, giving the small car’s body lines a particularly strong appearance.
The full-width taillight bar, the light-up logo, and the black diffuser on this small car create a particularly sporty look, arguably even more so than the current ID.3.
Based on the MEB Entry platform, this is a front-wheel-drive pure electric compact car. Notably, the motor power installed in the ID.2 all is greater than that of the ID.3/4, featuring a front motor with 166 kW / 226 hp. The official acceleration time from zero to one hundred kilometers per hour is under seven seconds, and the WLTP range reaches 450 km.
Due to its positioning, the ID.2 all uses a MacPherson independent suspension at the front and a torsion beam non-independent suspension at the rear. However, the combination of a compact car, high-power front-wheel drive, and a rear torsion beam suggests that the ID.2 all will offer a highly engaging driving experience.
The infotainment screen interface mirrors that of the upcoming ID.7, featuring a row of physical-style buttons below the display for climate control and volume adjustment.
A rotary knob on the center console manages multimedia and system functions, as gear selection remains via a column-mounted shifter behind the steering wheel. Two wireless charging pads are positioned above this knob.
The area beneath the center console provides ample storage space for various small items, offering practical utility and reflecting a design trend common among current pure electric vehicles. Notably, window controls for all four doors have finally been included.
The front-wheel-drive configuration of the ID.2 all provides a significantly larger trunk space, with capacity expandable from 490 liters to 1,330 liters—a figure that exceeds that of the ID.3.
Quick Take:
The ID.2 all is expected to be priced at less than EUR 25,000 (approximately RMB 180,000) in Europe, a considerable reduction compared to the EUR 40,000 ID.3. This move aims to fill the gap in the European market for compact electric vehicles, supporting Volkswagen's goal of capturing an 80% share of the EV market in Europe.
Upon its launch in China, its primary competitor will be the BYD Haitun, priced between RMB 116,800 and RMB 136,800. How much premium should the ID.2 all command under the Volkswagen badge to compete effectively against the Haitun?
Feifan F7 to Launch on March 27, with Pre-sale Starting at RMB 280,000
Feifanqiche announced that delivery units of the Feifan F7 have recently begun large-scale shipments, arriving at over 150 sales terminals nationwide this week. The new vehicle will officially launch on March 27, at which point pricing and corresponding configurations will be revealed. As the launch approaches, production scheduling for the Feifan F7 is set to begin.
Users who lock their orders before 24:00 on April 15 will be scheduled for production and delivery based on the order of their initial reservations; those who lock orders after 24:00 on April 15 will be delivered according to the sequence of their locked orders. If locking times fall on the same day, delivery priority will follow the timing of the initial reservation. Meanwhile, the benefits associated with the initial reservation for the Feifan F7 will expire at 24:00 on March 27.
The new vehicle is positioned as a mid-to-large pure electric sedan, offering two comprehensive range versions of 600 km and 666 km. It will be available with single-motor, dual-motor, and battery-swap configurations, with pre-sale prices ranging from RMB 280,000 to RMB 350,000.
Quick Take:
If the pre-sale price of RMB 280,000 is adjusted for battery leasing, the starting price of the Feifan F7 could drop to around RMB 200,000. In this context, the F7 offers solid cost-effectiveness.
In the market, the Feifan F7’s most direct competitor is the NIO ET5. If you are holding cash ready to buy, which car would you choose?
Lynk & Co 08 Exterior Revealed; Surprise on March 25?
On March 18, Lynk & Co revealed the exterior design of the Lynk & Co 08 via its official WeChat public account. How would you rate the styling of the Lynk & Co 08? The split-headlight 'eyes' appear to be daytime running lights, while the main headlamp units form a horizontal light strip below.
However, opinions within our community are divided regarding the taillights of the Lynk & Co 08. The design of the 08 is nearly identical to that of THE NEXT DAY concept car, and this entire design language will be carried over to future models.
Additionally, more information about the Lynk & Co 08 may be revealed on March 25, so stay tuned.
Quick Take:
With its premium design and the debut of the Flyme Auto infotainment system, the Lynk & Co 08 can be considered Lynk & Co's flagship model for the year.
The overall design of the 08 breaks away from previous Lynk & Co family styling, offering a more technological and upscale feel, with smooth body lines. This has led netizens to dub it the "domestic Macan."
Nevertheless, much information about the Lynk & Co 08 remains unknown at present. We believe Lynk & Co will bring us more surprises soon.
Spy photos of Mercedes-Benz EQG production prototype emerge; expected debut late this year
According to foreign media reports, spy photos of a production prototype of the Mercedes-Benz EQG have been revealed. The vehicle is expected to make its debut late this year. In terms of exterior design, the new car maintains a classic look that closely replicates the Mercedes-Benz G-Class, with changes to the front grille that are likely to adopt the EQ family's design language. Although this is an engine-free "Big G," the front engine compartment has been retained to preserve the authentic SUV style.
The side and rear designs of the new car also align closely with the Mercedes-Benz G-Class. However, significant differences are visible in the chassis: the exhaust system has disappeared, and there are two differentials each at the front and rear. Additionally, the EQG will feature a motor for each wheel, totaling four motors.
Inside, the new car’s interior is largely similar to that of the current Mercedes-Benz G-Class. It features a dual-screen design where a fully digital instrument cluster connects with a central multimedia display, paired with the latest double three-spoke flat-bottomed sport steering wheel. The center console area includes a touch panel accented with silver trim pieces, showcasing a luxurious blend of off-road capability and technology even as a pure electric vehicle.
In terms of details, physical buttons have been largely eliminated from the interior, except for the three differential lock buttons. Their function has changed from differential lock switches to controls for features such as "Tank Turn," which allows the vehicle to spin 360 degrees on the spot.
Powertrain: Current information indicates the vehicle will feature a quad-motor, all-wheel-drive setup. It will also utilize independent suspension and a newly designed rear axle structure, resulting in strong off-road capability.
Range: Mercedes-Benz states the new model will be equipped with a newly developed silicon-anode battery, increasing energy density by 20%–40%.
Quick Take:
Wait, even the G-Class is going electric? Fortunately, despite electrification, the G-Class’s signature blend of luxury and off-road prowess remains largely unchanged.
Moreover, the torque delivery characteristics of electric motors are better suited for traversing unpaved surfaces. However, the inconvenience of refueling does impact the overall experience on long-distance off-road trips. That said, few buyers actually use the G-Class for serious off-roading.
Once the EQG enters mass production, its main competitor in China will be BYD’s Yangwang U8. Both vehicles offer comparable specifications, equipment, and luxury levels. Which one would you prefer?
Written by: Jia Ming Edited by: Bobo