The loss figure of over 8 billion baht for the tech brand XPENG is a real number from the Q1 2026 financial report XPENG recently announced at the end of May. The net loss was 1.78 billion yuan, which converts to roughly 8.7 billion baht.
The whole industry was startled because in Q4 2025, XPENG managed to post a positive profit for the first time, but at the start of 2026, it plunged back into losses, increasing by 168% compared to the same period last year.
Behind this financial report lies a "triple storm" battering this advanced technology automaker:
Vehicle deliveries plunged by nearly 33%.
XPENG's vehicle sales and deliveries in Q1 this year reached only 62,682 units, down from 94,008 units in the same period last year. This means sales dropped by 33.3%. Compared to the previous quarter, revenue from vehicle sales alone fell sharply by 42.3%. The main cause is the slowing demand and purchasing power in China's electric vehicle market early this year. This affected all brands, including giants like BYD.
The price war in China shows no sign of stopping.
The price war in China's electric vehicle and EREV markets is far from over. Major brands continue slashing prices to fight for market share, indirectly pressuring XPENG to launch aggressive campaigns that reduce revenue per vehicle. Meanwhile, in this quarter, costs for memory chips and battery parts rose, contrary to declining revenue. This caused the vehicle margin, or profit rate from car sales, to drop to 12.1% from 13.0% in the previous quarter.
R&D costs for robotics and Robotaxi lines that are not yet profitable.
He Xiaopeng, CEO, openly admitted that in 2026 the company is investing heavily in developing humanoid robots and autonomous vehicles, or Robotaxi. This investment in new technology is for the brand's future and has not yet generated immediate sales revenue.
Looking at it differently, rather than focusing only on the heavy losses of over 8.7 billion baht, there are still positive signals. The company's structure isn't that bad; the overall gross margin grew nicely, rising to 20.6%, better than last year's 15.6%.
Supplementary income from technology services helped support the company, with other service revenues soaring by 41.2%. Most of this comes from Volkswagen paying for XPENG's blueprint and driving system technology to develop their own vehicles, yielding a high profit margin of 66.5% for XPENG.
Q2 recovery is possible. XPENG's report expressed confidence that deliveries in Q2 will rebound to between 100,000 and 106,000 units due to the phased launch of new models and exports to overseas markets, including Thailand, where XPENG's X9 van is gaining popularity amid fierce competition among domestic electric van brands.
In summary, XPENG is selling fewer cars this year due to a slowing market and price wars, but the brand is significantly increasing investment in robotics and autonomous driving Robotaxi industries. This explains the deep losses. However, the situation is not as bleak as it seems because XPENG has ample resources, especially the funds invested in drone, robot, and autonomous vehicle technologies, which will gradually reach the market soon. Still, social media and news tend to find profit stories less exciting than loss reports—don't you agree?
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