【Q&A Highlights】

Q1: What are the expectations for sales growth and reaching higher delivery levels?

- Xpeng aims for steady, long-term growth by improving organizational, product, marketing, and technological capabilities.
- Q2 will see five model upgrades, which may impact short-term sales but benefit long-term growth.
- New product launches from Q3 2025 through 2026 are expected to drive significant growth.
- AI capabilities, including the Turing chip, will provide a generational lead in the industry.
- The company expects continued growth in Q3, potentially reaching new historical highs in deliveries.

Q2: What are the latest expectations for export growth and strategies for key markets?

- Xpeng sees strong international growth, contributing significantly to top and bottom lines.
- Focus remains on Europe, Middle East, and Southeast Asia, with expansion into new markets like the UK and Indonesia.
- The company is exploring strategies to mitigate tariff impacts in Europe, including potential local investments.
- Long-term commitment to building a global presence, with plans to expand R&D, manufacturing, and localized services in multiple regions.

Q3: Can you provide updates on the Turing chip development and its integration into vehicles?

- Turing chip development is progressing well, with partial production starting in Q2 and broader implementation in Q3.
- The chip offers 3-7 times the effective AI computing power compared to current industry-standard automotive chips.
- Turing chip, combined with Xpeng's physical world foundation model and local models, is expected to provide a generational lead in assisted driving capabilities.
- The company aims to achieve L3 level autonomous driving software capabilities in the near future.

Q4: What is the strategy for the Mona series, particularly the upcoming Mona Max?

- Mona M03 is the first model in the series, with more models expected in 2026.
- The series targets young users with a focus on cool design, high intelligence, and strong emotional value.
- Mona Max will be the first to bring high-level assisted driving capabilities to the 150,000 RMB price range.
- The company is exploring the market acceptance of full-performance assisted driving in this price segment, hoping for a high adoption rate.

Q5: How is R&D investment being allocated, particularly towards AI-related areas?

- Total R&D expenses for 2025 are guided at around 8.5 billion RMB, up from 6.5 billion in 2024.
- A significant portion of the increase will be spent on AI-related activities, including improving cloud-based computational capabilities for autonomous driving and humanoid robot development.
- Investments will also continue in smart cockpit development, local voice features, and new vehicle model development.

Q6: What are the gross margin expectations for Q2 and beyond?

- Xpeng has achieved seven consecutive quarters of vehicle margin improvement.
- Q2 and beyond are expected to see further margin improvements due to:
1. Better product mix with new model introductions
2. Higher average selling prices
3. Continued cost reductions through supply chain optimization
4. Economies of scale with higher production volumes
- The company aims to approach high-teens total company gross margin in the second half of 2025, supporting profitability goals for Q4.

Q7: How is Xpeng leveraging its autonomous driving capabilities for humanoid robot development?

- Robotics development operates as an independent center within Xpeng but leverages the company's full-stack R&D capabilities.
- About 70% of development resources for humanoid robots come from the same sources as autonomous driving for cars.
- Xpeng's approach differs from other robotics companies, being data-driven and focusing on tightly coupled hardware, software, and chip development.
- The company aims to enter mass production for specific scenarios by 2026, with the ability for rapid OTA iterations.

Q8: What is Xpeng's strategy for moving upmarket with higher-priced models?

- Xpeng's product range covers from 100,000 to over 400,000 RMB, with plans to strengthen offerings in the 180,000 to 500,000 RMB range.
- New models launching from Q3 2025 through 2026 will feature improvements in design, smart cockpit, autonomous driving capabilities, and overall craftsmanship.
- The company is confident in achieving top 3 or even top 1 sales positions in various price segments.
- Future models will include both pure electric and "super electric" (dual energy) options.
- Xpeng expects the average selling price of its vehicle lineup to gradually increase over time.

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.