Xpeng is gearing up for expansion by announcing plans to hire 4,000 new employees and invest significantly in artificial intelligence (AI) technology, as revealed by the company’s CEO.
He Xiaopeng cautioned about the fierce competition in the electric vehicle (EV) sector, which he described as potentially leading to a “bloodbath.”
In a letter addressed to employees on Sunday, He Xiaopeng disclosed that the company would allocate a total of 3.5 billion Chinese yuan ($486.2 million) toward the research and development of AI technology, primarily focusing on “intelligent driving.”
Xpeng already offers a driver assistance system named Xpilot, enabling its vehicles to perform certain functions semi-autonomously. Additionally, the CEO outlined the company’s ambitious plans to introduce approximately 30 new or upgraded vehicle models over the next three years.
This year, Xpeng aims to launch its first models priced above 300,000 yuan and at 150,000 yuan, expanding its market reach across different price segments.
Despite a challenging start last year, Xpeng’s deliveries have shown improvement, serving as a key metric for the company’s sales performance.
Similar to other electric automakers, Xpeng has been grappling with a price war in China catalyzed by Tesla’s presence, compounded by ongoing economic pressures influencing consumer behavior.
While He Xiaopeng expressed optimism, noting that the company has “bottomed out” and carved a distinct path from its competitors, he acknowledged the daunting competition lying ahead.
“This year also marks the beginning of a fierce competition that may end in a ‘bloodbath’ (or as I prefer to call it, the brutal ‘knockout round’) among Chinese auto makers,” wrote Xiaopeng in the employee memo.
“XPeng has engaged in this cutthroat competition right from the outset, thus accumulating considerable experience. Our guts, grit and perseverance, I firmly believe, will lead us to victory.”
