- tech360.tv
Xpeng's $486M Investment Drive: Battling for EV Market Supremacy with 30 New Models & Expansion Plans Amidst China's Fierce Competition
Xpeng plans to invest a record 3.5 billion yuan in capital expenditure by 2024 to develop intelligent cars. The company will hire 4,000 new employees this year to enhance competitiveness. Xpeng aims to launch 30 new models over the next three years.
Xpeng, the Chinese electric vehicle (EV) maker, is gearing up for a fierce battle in the market as it plans to invest a record 3.5 billion yuan (US$486 million) in capital expenditure by 2024. The company aims to develop intelligent cars and stay competitive in the world's largest automotive market. Despite the challenging market conditions, Xpeng's founder and CEO, He Xiaopeng, remains optimistic about the company's future.
In a letter addressed to Xpeng employees, He Xiaopeng acknowledged the intense competition in the EV industry, stating that it will enter a new phase of "bloodbath." However, he expressed confidence in Xpeng's ability to succeed if they continue to work hard. To enhance competitiveness, the company plans to hire 4,000 new employees this year.
The letter also revealed Xpeng's ambitious plan to launch 30 new models over the next three years. This move demonstrates the company's determination to expand its product lineup and capture a larger market share. Xpeng has confirmed the contents of the letter.
The Chinese EV market has witnessed intense competition, with several start-ups collapsing or facing insolvency due to fierce price-cutting and overcapacity. Despite this, the sector's estimated manufacturing capacity remains at an imposing 20 million units. However, signs of a slowdown have emerged, with Fitch Ratings predicting that sales will only grow by 20 percent this year, compared to the previous year's 37 percent growth.
China is the world's largest automotive and EV market, with a significant focus on achieving carbon neutrality by 2060. Xpeng's ambitious investment plan aligns with the government's push for electric mobility and carbon reduction.
Industry experts believe that only big players with affordable products and advanced technologies can survive in the cutthroat market. Xpeng, as one of the market leaders, faces pressure to strengthen its research and development capabilities and improve sales. The company plans to introduce two new platforms later this year, one focusing on mass-market electric cars priced at around 150,000 yuan and the other targeting premium models with a price tag of over 300,000 yuan.
Xpeng, along with Nio and Li Auto, is considered one of China's top electric car makers and a competitor to Tesla. These companies assemble smart EVs with autonomous driving technology, digital cockpits, and high-performance batteries. However, only Li Auto has managed to turn a profit so far, primarily due to the popularity of its high-end sport-utility vehicles among affluent Chinese consumers.
Xpeng's Navigation Guided Pilot (X NGP) software offers limited autonomous driving capability, allowing its cars to navigate the streets of major Chinese cities like Beijing and Shanghai. Similar to Tesla's Full Self-Driving (FSD) system, X NGP is designed to enhance the efficiency, convenience, and accessibility of Xpeng's EVs.
Xpeng plans to invest a record 3.5 billion yuan in capital expenditure by 2024 to develop intelligent cars.
The company will hire 4,000 new employees this year to enhance competitiveness.
Xpeng aims to launch 30 new models over the next three years.
Source: SCMP