On December 31st, He Xiaopeng, Chairman and CEO of Xiaopeng Motors, released an internal letter for the start of the year 2025. In the letter, He Xiaopeng reviewed and summarized the performance of Xiaopeng Motors in 2024, and also revealed some key work priorities for 2025.
He Xiaopeng believes that 2024 is a year of "going against the wind". Xiaopeng Motors experienced a dark moment in the first half of the year and also broke historical records four times in a row in the second half of the year.
It is worth noting that based on the performance in the first half of 2024, Xiaopeng Motors' performance is not satisfactory. Data shows that in the first half of this year, Xiaopeng Motors delivered a total of 52000 new cars. Among them, Xiaopeng Motors delivered 22000 vehicles in the first quarter of this year and 30000 vehicles in the second quarter, with an average monthly delivery of less than 9000 vehicles.
After entering the second half of the year, Xiaopeng Motors achieved a sales turnaround with two new cars, MONA M03 and P7+, and its gross profit margin increased by about 20 percentage points during the year. Its cooperation with Volkswagen Group is also continuing to advance.
Regarding this, He Xiaopeng said, "With a technology driven strategy, Xiaopeng has rooted itself in the intelligent track, and through strategic changes, user product driven, comprehensive management and organizational rebirth, we have filled the gaps in marketing, channels, design and other areas. At the same time, after 10 years of firm investment in AI technology, Xiaopeng has begun to transform technology into product advantages and cost advantages, making the long board longer and wider
Focusing on customer orientation, business thinking, and global collaboration, we have exceeded 20 points of gross profit changes and established a scale and systematic capability for the entire chain from product definition, research and development, supply chain, marketing, delivery, to service, "He Xiaopeng added.
Looking towards 2025, He Xiaopeng believes that the competition in the automotive market will become more intense and predicts that the price war will begin in January. Although the penetration rate of new energy vehicles is expected to continue to increase, extreme cost control and homogenization of configuration will trigger more intense competition, and car companies lacking intelligence, comprehensive research and development, and market capabilities will lose opportunities for sustainable development, "said He Xiaopeng.
Xiaopeng Motors plans to launch multiple new models equipped with Xiaopeng AI system technology in 2025, with new and updated models appearing almost every quarter throughout the year. Among them, several new products are our 'big killers' that we have honed over the years. Their technological strength is unmatched in the entire industry, "said He Xiaopeng
In terms of globalization, He Xiaopeng believes that 2025 is the year when Xiaopeng Motors' internationalization strategy will accelerate comprehensively. At present, Xiaopeng Motors has entered 30 countries and regions around the world, and will exceed 60 countries and regions by the end of next year. In addition, He Xiaopeng has also set a longer-term goal for Xiaopeng Motors - in the next 10 years, half of Xiaopeng Motors' sales will come from overseas markets, and strive to become the first Chinese high-end new energy brand in terms of overseas market share.
In order to enhance competitiveness, Xiaopeng Motors plans to further expand its recruitment scale by 2025, recruiting more than 6000 employees.
It is worth mentioning that He Xiaopeng has repeatedly stated that the automotive industry will enter the knockout stage from 2025 to 2027. In an internal letter, He Xiaopeng wrote, "For Xiaopeng, one of the core goals over the past three years is that we need to enhance the company's system capabilities by supporting continuous improvement of the upper limit through system innovation, as well as building a more comprehensive lower limit basic capability, and achieving true overall balance
In an internal letter, He Xiaopeng also revealed that XPD2.0 (Xiaopeng Product Development System) of Xiaopeng Motors has been officially launched. Enterprise processes and toolization are the cornerstone of Xiaopeng Motors' management. By relying on the system, we can improve the baseline and top line (bottom line+high score) of organizational capabilities, and respond to future uncertainties with rule-based certainty. Our goal of building the company's' four horizontal process tools' by 2024 is steadily advancing. XPD is the key first step in our self-improvement of the system, promoting product development from disorder to order, and achieving replicable product commercial success, which is XPD's mission He Xiaopeng said.