CHINESE electric-vehicle maker Xpeng Inc. reported a bigger loss than the market was expecting for the third quarter as costs related to research and development and selling expenses jumped.

The Guangzhou-based company, which is listed in the U.S. and Hong Kong, unveiled a net loss of 1.59 billion yuan (US$249 million) for the three months through September, versus a 1.15 billion yuan loss a year earlier and a 1.19 billion yuan deficit the previous quarter. Analysts on average had forecast a loss of 1.09 billion yuan.

Revenueincreased to 5.7 billion yuan, beating the company’s guidance of 5 billion yuan and bettering average analyst expectations for 5.2 billion yuan. Gross margin for the three-month period was 14.4 percent, better than the second quarter’s 11.9 percent and the 13.4 percent the market expected.

“We continued record-setting growth with the highest vehicle deliveries among China’s startup new energy vehicle automakers,” Chief Executive Officer He Xiaopeng in a statement Tuesday. “This outperformance testifies to the market’s recognition of the differentiated value our vertically integrated in-house developed software and hardware bring to our vehicles.”

Xpeng President Brian Gu noted the company had “achieved strong growth momentum despite the challenges of semiconductor shortage.” Xpeng delivered 25,666 of its G3 sports-utility vehicles and P7 sedans in the period, 14 percent higher than the upper end of its outlook in August.

The carmaker, founded in 2014, released a fourth model -- the G9 SUV — at the Guangzhou auto show last week, a larger sports-utility vehicle pitted more directly against Tesla Inc.’s Model Y and Nio Inc.’s ES series.

Even though automakers globally have been plagued by a chips shortage, which has lasted almost a year now and cost the industry around US$210 billion in lost production, according to consulting firm Alix Partners, it’s been a banner 12 months for China’s car market.

(SD-Agencies)