©Reuters. A woman walks past the showroom of Chinese electric vehicle (EV) manufacturer XPeng in Beijing, China, on February 4, 2023.Reuters/Florence Law/File photo
SHANGHAI/BEIJING (Reuters) – Chinese electric car maker Xiaopeng (New York Stock Exchange: ) is aiming to sell 4,000 cars this year as it seeks to survive what has been described as a “bloody sea” of competition to become the world's largest electric car maker. The company announced it will hire new people and invest millions of dollars in artificial intelligence. car market.
The additions will expand the Volkswagen-backed EV maker's workforce by 25% from its latest headcount of 15,829 at the end of 2022.
The expansion was announced in a letter from CEO He Xiaopeng to employees on Sunday, the first business day after the Lunar New Year holiday.
He said the company will also invest 3.5 billion yuan ($486.36 million) in AI research and development for intelligent driving, and that Xpeng plans to release about 30 new or improved models within three years. added.
“Facing the gloomy macroeconomic situation, many business partners are withdrawing and are afraid to invest. I think this is an opportunity for our company's development,” he said, adding that 2024 is the year for Chinese auto brands. This will be the first year of the Knockout Round. “In 2024, we will reverse this trend and enter a fast virtuous cycle in the fourth quarter or earlier.”
Xpeng's expansion plans stand in contrast to rivals rushing to cut costs. Demand in the world's largest auto market remains weak despite new discounts led by Tesla (NASDAQ:).
Fellow Chinese EV maker Nio (NYSE:) announced in November that it would cut its workforce by 10% to increase efficiency amid increasing competition.
Facing weak domestic demand, Chinese automakers are turning to exports as a growth driver. However, China's growing influence as a car exporter is causing friction overseas.
China's Ministry of Commerce announced earlier this month that it would encourage the new energy vehicle industry to comply with foreign trade restrictions and cooperate with overseas companies, following a European investigation into China's subsidies to the sector.
Volkswagen (ETR:) announced in July that it would invest approximately $700 million in Xpeng, acquiring a 4.99% stake in the company.
“This year is Xpeng's 10th year. Our performance must more than double,” he said.
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