Xpeng CEO Outlines Bold Vision for 2025 Amid Rising Industry Challenges

Xpeng Chairman and CEO He Xiaopeng has laid out the company’s priorities for the coming year in an internal letter, urging employees to brace for escalating competition in the auto industry. He has predicted that a fierce price war in the market would begin as early as January 2025, marking the onset of a period of intense rivalry.

He warned that between 2025 and 2027, China’s auto sector would enter a phase of industry-wide consolidation. He noted that while new energy vehicle (NEV) adoption is expected to grow further, heightened cost pressures and increasingly uniform product features would drive stronger competition. Companies lacking core strengths—such as robust R&D capabilities, intelligent technology, and effective marketing—could face significant challenges to sustained growth, he added.

For Xpeng, He emphasized that the primary focus over the next three years would be enhancing the company’s “systemization capabilities.” This involves improving innovation to push the boundaries of the company’s strengths while building a balanced foundation in core areas.

Highlighting the role of artificial intelligence, He stated that Xpeng aims to become a global leader in AI-integrated vehicles within the next decade. He said the company intends to lead across product design, business operations, organizational structure, and international expansion.

On the global front, He announced that Xpeng’s internationalization efforts would accelerate in 2025. The company, which has already entered 30 countries and regions, plans to expand to over 60 by the end of 2025. Over the next decade, Xpeng aims to derive half of its sales from overseas markets, aspiring to become the top Chinese mid-to-high-end NEV brand globally in terms of overseas market share. He stressed the importance of collaboration between international and domestic teams to achieve these goals.

As part of its product strategy, He reiterated that Xpeng would launch either a new or revamped vehicle nearly every quarter in 2025. Several of these models, which have been under development for years, are expected to have unmatched technological capabilities compared to others in the industry. He explained that Xpeng’s core strategy would center on creating a streamlined and differentiated product lineup with a strong focus on global markets.

He described the company’s future initiatives, including a systematic approach to competition, as critical to succeeding during the consolidation phase and advancing to the next stage of industry leadership. To support this growth, He revealed plans to expand Xpeng’s workforce, with over 6,000 new hires expected in 2025. He also encouraged former employees to return to the company, inviting current employees to reconnect with past teammates.

Through these measures, Xpeng aims to strengthen its position in a rapidly evolving market, maintaining a competitive edge in the global NEV landscape.

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