China Auto Daily丨 Leapmotor’s Q3 Revenue Soars

China’s Automotive Market Demonstrates Strong Growth in October

The latest data from the China Association of Automobile Manufacturers (CAAM) reveal a strong rebound in the country’s automobile market for October 2024. Total vehicle sales for the month reached 3.05 million units, marking a 7% year-over-year (YoY) increase. Production figures were also robust, with 2.996 million units produced, reflecting a 3.6% YoY rise. The CAAM anticipates that the automotive market will continue its upward trend for the last two months of the year.

New Energy Vehicles (NEV) Sales Surge

October was a particularly notable month for the new energy vehicle (NEV) sector. NEV production and sales figures stood at 1.463 million and 1.43 million units, respectively, showcasing impressive YoY growth of 48% and 49.6%. The share of NEV sales in total automobile sales for the month was 46.8%. From January to October, NEV production and sales reached 9.779 million and 9.75 million units, respectively, up by 33% and 33.9% YoY. NEVs constituted 39.6% of total vehicle sales during this period.

China Second-Hand NEV Market Gains Traction

In addition to new car sales, the second-hand NEV market in China is also showing strong growth. According to the China Automobile Dealers Association, the first nine months of the year saw a 54% YoY increase in used NEV transactions. This surge suggests that the annual transaction volume for used NEVs might exceed one million units for the first time.

Leapmotor's Q3 Financial Performance

On November 11, Leapmotor unveiled its third-quarter financial report for 2024. The company posted revenues of 9.86 billion yuan (approximately $1.35 billion), a significant 74.3% YoY increase. It delivered 86,165 vehicles, reflecting a 94.4% YoY rise. Leapmotor's operating cash flow was positive at 1.96 billion yuan, with free cash flow reaching 1.32 billion yuan. The company’s gross margin improved considerably to 8.1%, thanks to an optimized sales structure, effective cost control, and economies of scale. Leapmotor expects to maintain positive operating and free cash flows in the fourth quarter, along with further increased gross margins.

Xpeng’s Innovative Chip Upgrade Crowdfunding

Xpeng Motors announced the launch of an industry-first crowdfunding initiative for upgrading chips in older vehicle models. The initiative, aimed at enhancing both the cockpit and intelligent driving chips, will use a model-specific crowdfunding approach. Once a target number of participants is reached, preparations for the upgrade will commence. If the crowdfunding goal is not met, contributors will receive a full refund. The campaign is accessible on the Xpeng App and runs from today until December 12.