I boldly predict that the price war will ignite from January, and car companies lacking intelligence, comprehensive research and development, and market capabilities will lose the opportunity for sustainable development. "On December 31st, He Xiaopeng, Chairman and CEO of Xiaopeng Motors, issued a letter to all employees and proposed that the next 10 years will be the era of AI, and Xiaopeng Motors needs to be built into a" global AI car company ".
Throughout 2024, Xiaopeng Motors will emerge from a trend of low in the front and high in the back. At the beginning of this year, Xiaopeng Motors' delivery volume continued to hover at a low level, achieving monthly delivery of over 10000 vehicles for the first time in May. In the following months, with the help of new models such as MONA M03 and Xiaopeng P7+, Xiaopeng Motors saw a rapid increase in delivery volume. Starting from September, Xiaopeng Motors has continuously delivered over 20000 vehicles per month, and achieved monthly delivery of 30000 vehicles for the first time in November.
He Xiaopeng stated that with the help of strategic changes, user driven product development, comprehensive management and organizational restructuring, Xiaopeng Motors has made up for its shortcomings in marketing, channels, design, and other areas. In the next three years, Xiaopeng Motors' core strategy will be to focus on a clear product roadmap, maintain differentiation, and accelerate globalization.
In 2025, Xiaopeng Motors plans to launch multiple new models fully equipped with Xiaopeng AI system technology. Almost every quarter, new and updated models will be launched, among which several new products are key products that Xiaopeng Motors has been honing for several years. In addition, Xiaopeng Motors will accelerate its overseas expansion by 2025. At present, Xiaopeng Motors has entered 30 countries and regions around the world, and by the end of next year, Xiaopeng Motors plans to enter more than 60 countries and regions. In the next 10 years, Xiaopeng Motors aims for half of its sales to come from overseas.
He Xiaopeng believes that from 2025 to 2027, the automotive industry will enter the knockout stage, and recently the entire industry has also felt the chill of the knockout stage more vividly. Although the penetration rate of new energy vehicles is expected to continue to increase, the extreme cost control and homogenization of configuration will trigger more intense competition. Car companies lacking intelligence, comprehensive research and development, and market capabilities will lose opportunities for sustainable development.
Product homogenization is considered an important reason for the current internal competition in the automotive industry. Due to product homogenization, there is no significant gap in product strength among related car models. In order to increase sales, car companies need to return to the cycle of competing costs and internal traffic. In the past, the number of new products in the automotive market was about 100 per year. However, in October this year alone, 56 new cars were launched in China, and there was a scene where 6 new cars besieged the Tesla Model Y. In the fierce competition, car companies have to accelerate product launch and iteration speed, and stimulate consumer purchasing desire through new products.
A senior executive of a domestic car company once said, "Currently, a very important aspect of the 'roll' in China is the lack of technological innovation. Everyone is homogeneous, and the only outcome of homogenization is a 'price war'. Therefore, we need technological innovation, category innovation, and brand innovation to achieve customer segmentation, so that everyone can get what they want
Artificial intelligence is considered by some car companies as an important means of breaking through. Starting this year, car companies such as Xiaopeng and Ideal have increased their investment and layout in artificial intelligence, large models, and computing chips. Taking Xiaopeng Motors as an example, this year Xiaopeng Motors announced its AI system and released products and plans such as Turing AI chips, AI cars, flying cars, and AI robots.
He Xiaopeng emphasized in his internal letter that the development trend of AI will be larger than that of mobile Internet and last longer. No one can defeat the trend, and AI will also have a strong first mover advantage; Xiaopeng is currently at the forefront of the AI industry. In the next 10 years, we aim to build Xiaopeng into a globally leading AI automotive company, achieving comprehensive leadership in product, business, organization, and globalization. In the next three years, Xiaopeng Motors will focus on refining its product roadmap with globalization as its core strategy. In addition, Xiaopeng will expand its enrollment by 6000 people next year and welcome old employees to return.