XPeng's services revenue nearly doubled on contract engineering for a carmaker

XPeng reported second-quarter revenue from services and others of 2.70 billion yuan, up 93.9 percent from 1.39 billion a year earlier and 32.6 percent from the first quarter, in unaudited results published on August 24.

The company attributed the increase primarily to technical research and development services rendered to a car manufacturer, following what it described as the achievement of certain key milestones in the period under an agreement with that manufacturer, and secondarily to sales of parts and accessories. The results do not name the manufacturer.

The margin on that line was 75.1 percent, against 53.6 percent a year earlier and 66.5 percent in the first quarter. XPeng’s vehicle margin over the same quarter was 12.1 percent, down from 14.3 percent a year earlier, which the company put down to a product generation transition. Blended gross margin was 20.7 percent.

Total revenue was 19.74 billion yuan, up 8.0 percent year on year, on deliveries of 103,295 vehicles — an increase of 0.1 percent from the 103,181 delivered in the same quarter of 2025. Research and development expenses rose 32.1 percent to 2.91 billion yuan, which XPeng attributed to new vehicle models and AI-related technologies. Net loss was 1.34 billion yuan, against 0.48 billion a year earlier and 1.78 billion in the first quarter.

For the third quarter the company guided to deliveries of 115,000 to 121,000 vehicles and revenue of 21.7 billion to 23.4 billion yuan.