Xpeng Inc, one of three Chinese electric car companies listed in the United States, reported a narrower-than-expected loss and increase in sales for the first quarter of 2021, as it increased production capacity that fulfil demand for vehicles in China’s booming electric vehicle market.

Detail: Xpeng booked a quarterly revenue of CNY2.95 billion, representing a 655% year-over-year jump and a 3.5% quarter-over-quarter increase. Its non-GAAP net loss was CNY786.6 million, beating market estimate of a CNY904.8 million loss.

Despite the global chip shortage, Xpeng delivered a record of 13,340 vehicles in the first quarter, quintupled the figure from a year earlier.

“We have a very good start in 2021 with record-breaking vehicle deliveries, overcoming major challenges such as seasonally slower demand for automobiles and a shortage of semiconductor,” said He Xiaopeng, chairman and CEO of Xpeng.

According to He Xiaopeng, his company had delivered 5,147 electric cars in Apirl, nearly double the number in March.

In April, Xpeng had launched its third model- Xpeng P5 smart sedan that equip with Lidar technology.

Context: Xpeng has recently inked a deal with the Wuhan government to build an EV manufacturing base in the city, which will further boost the company’s production capacity in the near future.

Xpeng expects the global chip shortage will last for at least another three months.

Looking ahead, Xpeng expects to deliver between 15,500 and 16,000 vehicles in the second quarter.

Most recently, Xpeng also announced a plan to accelerate its foray into European market. In the first quarter, the company has delivered more than 300 units of Xpeng G3 SUV to Norway. Xpeng expects to begin deliver more vehicle model such as it P7 sedan to Norway in the second half of 2021.