Shanghai (ZXZC)- Chinese EV startup XPeng Inc. recently set up a new sales service subsidiary in Haikou, the capital of Hainan province, as the company is working hard on expanding its service networks.

Founded on May 26, the new company named Haikou Xiaopeng Automobile involves a registered capital of 10 million yuan ($1.571 million). Its business scope extends to cover roadside assistance service, sale of charging piles, distribution of pre-owned cars, maintenance and repair of motor vehicles, and motor vehicle refit service.

The Haikou-based subsidiary is wholly controlled by Xiaopeng Automobile Sales Co.,Ltd., according to Tianyancha.

Prior to the establishment of the Haikou company, XPeng has also built similar sales service subsidiaries in Guangzhou, Maoming, Wenzhou, Beihai, Xining, and Zibo this year.

Some industry insiders said the new launch of Haikou sales service company marks XPeng’s intention to strengthen business expansion after seeing continuously growing deliveries and revenues.

In the first quarter of 2021 (Q1 2021), XPeng gained 2.951 billion yuan ($463.622 million) in revenues, posting an impressive surge of 616.1% from the year-ago period and a growth of 3.5% from the previous quarter, the Chinese EV startup announced on May 13.

First-quarter revenues from vehicles sales reached 2.81 billion yuan ($441.47 million), representing a hike of 655.2% from the previous year and an increase of 2.7% from the fourth quarter of 2020 (Q4 2020).

In addition, deliveries of XPeng's vehicles reached 13,340 units in Q1 2021, soaring 487.4% year on year and edging up 2.9% quarter over quarter.

As of March 31, 2021, XPeng's physical sales and service network consisted of 178 stores and 61 service centers, covering 70 cities, according to XPeng's quarterly financial results. The company plans to increase the cumulative number of its sales outlets to around 300 by the end of 2021, covering over 110 cities.