XPeng's current volume ramp has already increased vehicle gross profit; selling more did not push down the vehicle gross margin. However, the average amount left per vehicle declined. The M03 chip swap and continued GX deliveries are addressing two different accounts: how to control costs on the volume model, and how to contribute more gross profit from higher-priced cars.

40,000 more cars sold, RMB 729 million more gross profit

In Q2 2026, XPeng delivered 103,295 vehicles, up 40,613 from Q1, a 64.8% increase. Vehicle revenue minus cost of sales: gross profit rose from RMB 1.330 billion to RMB 2.059 billion, up 54.8%.

Excerpt from XPeng Q2 financial report, amounts in RMB billion; the first two columns are Q2 and Q1 respectively.

Estimating by dividing vehicle revenue and cost by quarterly deliveries: average revenue per vehicle fell from RMB 175,500 to RMB 165,000, cost fell from RMB 154,300 to RMB 145,100, and gross profit per vehicle fell from RMB 21,200 to RMB 19,900. Revenue per vehicle fell by about RMB 10,500, cost fell by about RMB 9,200, so gross profit fell by about RMB 1,300.

Using Q1 average gross profit per vehicle: the delivery increase corresponds to about RMB 862 million in gross profit increment, offset by about RMB 133 million from lower per-vehicle contribution, for a total increase of RMB 729 million. Vehicle gross margin was 12.1% in both quarters; every RMB 100 of vehicle revenue still left RMB 12.1 in gross profit, and as average revenue per vehicle declined, the corresponding gross profit amount also decreased.

M03 chip swap: cost savings must also pay for new features

According to CPCA data compiled by CnEVPost, M03 deliveries were 20,432 in Q1 and 42,056 in Q2, with its share of company deliveries rising from 32.6% to 40.7%. Of the 40,000-plus additional cars XPeng sold, about 53% came from the M03. How much gross profit each volume model leaves directly affects the return on this batch of incremental deliveries.

2026 MONA M03, priced from RMB 119,800 to RMB 151,800. Image: XPeng official.

At the April refresh, the M03 Max switched from two NVIDIA Orin-X chips to a single self-developed Turing chip. For the two range versions of the old and new Max generations, the guide prices are both RMB 129,800 and RMB 139,800. In an April 2 interview, He Xiaopeng expected the new M03 to be more profitable than the 2025 model, attributing the "more features at the same price" to self-developed chip cost reduction, scale, and operational efficiency.

At the same transaction revenue, cost reductions such as the chip swap must first offset the cost of added features; only the remaining net savings can become additional gross profit per vehicle. MONA product head Yang Guang also explained that sharing chips and algorithms across multiple models helps amortize costs.The M03 already accounts for 40% of deliveries; the value of cost reduction lies in the fact that net cost saved per vehicle can accumulate across the volume model's sales.

GX deliveries exceed 7,000 for three consecutive months

The GX launched on May 20, with limited-time promotional prices ranging from RMB 269,800 for the pure electric Max to RMB 349,800 for the Ultra flagship. At the May 28 earnings call, He Xiaopeng revealed that the Max accounted for less than 5% of orders at the time, while the flagship version had the highest share. In the early launch period, buyers were willing to pay more for higher trims.

Work from Creator Alliance, reviewed and approved.