Key Points:
- Xpeng plans to hire 4,000 new employees and invest heavily in AI technology for intelligent driving systems.
- The company will launch around 30 new or upgraded vehicle models over the next three years.
- Despite challenges and intense competition, Xpeng’s deliveries have shown signs of improvement.
- CEO He Xiaopeng acknowledges the competitive landscape but expresses confidence in Xpeng’s capabilities to succeed.
Xpeng, the Chinese electric vehicle (EV) manufacturer, is gearing up for expansion amidst fierce competition in the EV sector. The company’s CEO, He Xiaopeng, revealed plans to hire 4,000 new employees and invest heavily in artificial intelligence (AI) technology, signaling a strategic move to stay ahead in the highly competitive market.
The company intends to allocate a substantial amount, totaling 3.5 billion Chinese yuan ($486.2 million), towards the research and development of AI technology, specifically focusing on “intelligent driving” systems.
Xpeng’s existing driver assistance system, Xpilot, enables its vehicles to perform certain functions semi-autonomously, and this investment underscores the company’s commitment to advancing autonomous driving capabilities.
Moreover, Xpeng plans to introduce approximately 30 new or upgraded vehicle models over the next three years, demonstrating its dedication to innovation and product development. This year, the company aims to launch its first models in price segments exceeding 300,000 yuan and target the more affordable segment at 150,000 yuan.
Despite facing challenges in the past, Xpeng has experienced a resurgence in deliveries, a crucial metric for gauging sales performance in the automotive industry. The company’s revitalized delivery figures come amidst intense competition and a price war in the Chinese EV market, initially ignited by Tesla’s presence. Additionally, economic pressures in China have led to cautious consumer spending habits, further intensifying the competitive landscape.
CEO He Xiaopeng states a cautiously optimistic tone in a letter on Sunday, acknowledging the competitive challenges ahead while expressing confidence in Xpeng’s ability to navigate them successfully. He emphasized that Xpeng has accumulated valuable experience from engaging in cutthroat competition within the industry. Despite the daunting prospects of a potential “bloodbath” in the market, Xiaopeng exuded confidence in Xpeng’s resilience, determination, and capacity to emerge victorious.
