XPeng expects total transaction revenue of more than 1 billion yuan ($149 million) from carbon-credit agreements with Porsche and several other international carmakers covering the EU, the UK and Australia, an XPeng VP confirmed on Tuesday.
“This is true,” the executive wrote on his verified Weibo account after Yicai reported the deals, adding that XPeng had not kept quiet about them but “just hadn’t mentioned them proactively.”
XPeng expects to receive more than 500 million yuan ($74.5 million) in carbon-credit revenue in 2026, “which is high-margin income,” he wrote.
“Besides the carbon-credit deal with Porsche, several international automakers have also proactively chosen XPeng,” he said.
He did not name the other buyers or give prices, and XPeng has not issued a statement or exchange filing on the agreements.
The 1 billion yuan is an estimate of total transaction value across several markets and years, not revenue already received.
Overseas Volume
The credits come from XPeng’s all-electric sales abroad, which count toward the fleet emissions rules that carmakers selling combustion models must meet.
XPeng’s overseas deliveries exceeded 20,000 in the second quarter for the first time, up 81% from a year earlier, the company said on its earnings call on August 24.
Overseas markets accounted for more than 25% of first-half revenue, and the average selling price of its exported models exceeded €40,000 ($45,400), it said.
XPeng expects overseas deliveries of the MONA L03 to start in the fourth quarter and to lift quarterly overseas volume above 40,000.
It delivered 45,008 vehicles outside China in 2025, up 96%.
Total deliveries were flat in the second quarter, at 103,295, up 0.1% from a year earlier.
Porsche Pool
Porsche left the Volkswagen Group’s EU emissions pool and formed an open pool with XPeng for 2026 and 2027, according to a European Commission filing dated August 5.
EU rules let carmakers pool their fleets so that one whose average emissions are above its target can offset them against a maker below it.
The fleet target from 2025 is 93.6 grams of CO2 per kilometre, with a fine of €95 ($108) for each gram over the limit on every car registered.
Carmakers are allowed to average their performance over 2025 to 2027.
The financial terms of the Porsche arrangement have not been disclosed.
Volkswagen Group owns about 5% of XPeng, which also provides technical services to the German group.
XPeng’s executive cited those earlier agreements with Volkswagen as the reason other carmakers were willing to work with it.
Consultancy Dataforce put XPeng’s theoretical EU credit surplus from January 2025 to August 2026 at about €400 million ($454 million), Quattroruote reported last week.
That estimate values each gram at the level of the EU fine, which is the most a buyer would pay.
The total XPeng expects from all three markets is about a third of that figure.
UK and Australia
In the UK, carmakers must sell a rising share of zero-emission cars, 33% this year, or buy allowances from those with a surplus.
The fine for each car short of the target is £12,000 ($15,900).
The UK government is reviewing the targets and compliance flexibilities in a consultation that closes on October 23.
Australia’s New Vehicle Efficiency Standard generates credits and penalty units per vehicle supplier from July 2025.
XPeng set up its own UK national sales company this month, with distributor International Motors continuing to provide operational services, and took over its Australian business from importer TrueEV on April 1.
Neither the executive nor the reports said how credits from cars sold through those distributors are treated.
In the Accounts
XPeng first named carbon-credit trading as a source of revenue in its results for the fourth quarter of 2025, alongside technical services for Volkswagen and parts sales.
Its services and other revenue rose 65.6% to 8.34 billion yuan ($1.24 billion) in 2025, at a gross margin of 68.2%, but it did not break out the credit portion.
Its first-quarter 2026 results said there was “no revenue contribution from carbon credit trading” in the quarter, and its second-quarter results did not mention credits.
XPeng reported a net loss of 3.12 billion yuan ($464.9 million) in the first half.
Leapmotor, Tesla
Chinese rival Leapmotor agreed in March to transfer credits to its shareholder Stellantis for EU and UK sales in 2026, with an annual cap of 2.8 billion yuan ($417 million), after recording 1.11 billion yuan ($165 million) from such transfers in 2025, according to reports of its filing.
Stellantis and Toyota left Tesla‘s EU emissions pool for 2026.
Tesla’s revenue from regulatory credits fell to about $2 billion in 2025 from $2.76 billion a year earlier, according to its filings.
