China’s Xpeng forecasts rise in quarterly deliveries as promotions boost EV demand | WSAU News/Talk 550 AM · 99.9 FM

(Reuters) -Chinese electric-vehicle maker Xpeng forecast a rise in second-quarter vehicle deliveries on Tuesday, saying it expects a boost to demand from lower prices and subsidies, sending its U.S.-listed shares up 8% in premarket trading.

The company said it expects to hand over between 29,000 and 32,000 vehicles, an increase of about 25% to 37.9% from the previous year.

Xpeng’s forecast signals that heavy investments in new technology, including artificial intelligence and self driving, as well as promotions and discounts were paying off.

China is currently witnessing a boom in EV exports as foreign consumers look for more cost-effective options.

Xpeng also reported a gross margin of 12.9% in the first quarter, compared with 1.7% a year earlier.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Varun H K and Shinjini Ganguli)