XPeng aims to become a global AI automotive company

Author | Wang Xiaojun

Editor | Zhou Zhiyu

On the last day of 2024, the automotive industry continues to push the limits of competition, entering a new year of intense rivalry.

Today, He Xiaopeng, Chairman and CEO of XPeng, released an all-staff letter titled "2025 New Journey, Through the Storm, Keep Running!" to summarize the year and kick off the new year.

Despite being in a rapidly changing industry, XPeng has become a representative of turning the tide in the face of adversity this year. From XPeng MONA to XPeng P7+, the two models have kept pace in product, marketing, and sales, quickly gaining momentum and driving XPeng's sales surge at the end of the year.

He Xiaopeng summarized 2024: "Half is seawater, half is fire. We have experienced the so-called darkest moments in the first half of the year and have also enjoyed the highlights of breaking historical records four times in the second half."

Although XPeng has entered a favorable period, the absolute leaders in this industry are still fiercely competitive, and for many players, it is still difficult to say they have reached the shore.

He Xiaopeng candidly shared his observations: "The market competition in 2025 will definitely be more intense. I even boldly predict that a price war will ignite starting in January. Although the penetration rate of new energy vehicles is expected to continue to rise, extreme cost control and homogeneity in configurations will lead to fiercer competition, and car companies lacking core competitiveness such as intelligence, comprehensive R&D, and market capabilities will lose opportunities for sustainable development."

The game of swimming in a sea of blood continues, and the past year has merely been a prologue; preparing for the coming year is the real task.

For 2025, He Xiaopeng has redefined XPeng — XPeng is a global AI automotive company. Based on this, over the next ten years, XPeng aims to become a globally leading AI automotive company, achieving comprehensive leadership in products, business, organization, and globalization. Additionally, XPeng plans to accelerate its internationalization, aiming to exceed 60 countries and regions by the end of next year; in the next ten years, half of XPeng's sales will come from overseas.

Crossing a series of ambitious goals, specifically, XPeng will have new or updated models every quarter next year. On the first day of the new year, an important milestone in the XPeng system iteration — XPD2.0 (XPeng Product Development System) will be officially launched.

As 2025 unfolds, XPeng also plans to expand its workforce. The plan for 2025 is to recruit over 6,000 employees, while also hoping that "old classmates" who left XPeng for various reasons will return.

In 2025, He Xiaopeng has already adopted a posture of competing fiercely, and the game for securing a final position will become even more intense.

Below is the original text of He Xiaopeng's internal letter "2025 New Journey, Through the Storm, Keep Running!":

Dear colleagues:

Happy New Year! We are about to bid farewell to the challenging 2024 and step into the steady and far-reaching 2025, looking forward to the promising 2026. On this journey, I believe all XPeng people have experienced an unforgettable emotional journey. Thank you to everyone for your perseverance, patience, adjustments, accumulation, and breakthroughs during this time! Thank you for everyone's efforts!

Through the Storm, Embrace 2025, Keep Running

2024 is an unforgettable year, magnificent and tumultuous, half sea and half fire. We have experienced the so-called darkest moments in the first half of the year and have also enjoyed the glorious moments of breaking historical records four times in the second half.

The market is always turbulent, with you chasing me, and the flags on the city walls changing. For XPeng, success or failure is not unfamiliar. Looking back at the past ten years of XPeng, in 2021, we won the crown of the new force industry leader. At that time, we were filled with ambition, telling ourselves to be humble and cautious, but in fact, we were also confident and proud. Then we either soared or faced a bottleneck, navigating a rugged path and forging ahead. Looking back at this experience, the more the storm blows and the waves crash, the more it sharpens a company's confidence and quality. To have the ability to stand at the forefront, we must rely on ourselves to maintain passion, remain calm, and build a solid foundation while honing our internal skills.

In 2024, from XPeng X9 to XPeng MONA M03 and XPeng P7+, we have demonstrated our comprehensive transformation in systemic capabilities, and we are already capable of continuously creating products that users love. During this quiet period, XPeng has rooted itself in the intelligent track with a technology-driven strategy, leveraging strategic transformation, user product-driven approaches, and a comprehensive rebirth in management and organization. We have addressed shortcomings in marketing, channels, and design. At the same time, with a decade of steadfast investment in AI technology, XPeng has begun to translate technology into product advantages and cost advantages, making our strengths longer and broader. Additionally, focusing on customer orientation, operational thinking, and overall collaboration, we have exceeded our gross profit change by 20 points, establishing a scalable and systematic capability across the entire chain from product definition, R&D, supply chain, marketing, delivery, to service.

The journey through the storm is our valuable asset; what does not kill you will ultimately make you stronger. After ten years of ups and downs, the people of XPeng have not only developed the strength to "fight tough battles" but will also internalize each "victory" into muscle memory. As we bid farewell to 2024, in the dawn's light, we must not be complacent but continue to surpass ourselves and head towards the blue ocean.

In 2025, Continue to Lead as a "Global AI Automotive Company"

I have said that from 2025 to 2027, the automotive industry will enter a phase of elimination, and recently the entire industry has felt the chill of this elimination round more vividly. The market competition in 2025 will undoubtedly be more intense, and I even boldly predict that the price war will ignite starting in January. Although the penetration rate of new energy vehicles is expected to continue to rise, extreme cost control and homogeneity in configurations will lead to fiercer competition, and car companies lacking core competitiveness such as intelligence and comprehensive R&D and market capabilities will lose opportunities for sustainable development.

For XPeng, one of the core focuses over the next three years is to enhance the company's systemic capabilities, supporting continuous improvement of the upper limit of the company's capabilities through systemic innovation while also building a more comprehensive foundational capability and achieving true overall balance.

The next ten years will be the era of AI. I am pleased that XPeng is at the forefront of the industry in embracing artificial intelligence, building a "global AI automotive company." The trend of AI development will be greater and last longer than that of mobile internet; no one can defeat the trend, and AI will also have a strong first-mover advantage. XPeng is currently positioned as an industry leader in the AI field In the next 10 years, we aim to build XPeng into a globally leading AI automotive company, achieving comprehensive leadership in products, business, organization, and globalization. We will continue to innovate, exploring a new ecosystem for future mobility with art in one hand and technology in the other.

In 2025, we plan to launch multiple new models fully equipped with the XPeng AI system technology, with significant new products and updates introduced almost every quarter throughout the year. Among these new products are several "big killers" that we have honed for years, with technological capabilities unmatched in the entire industry. Looking ahead to the next three years, our core strategy is to refine our product roadmap with clarity, focusing on differentiation and globalization. These strongest "ammunition" combined with our systematic operational capabilities will be a strong backing for us to break through the elimination rounds and enter the promotion rounds.

The year 2025 will be a year of accelerated internationalization for us. Currently, we have entered 30 countries and regions worldwide, and by the end of next year, we aim to exceed 60 countries and regions. In the next 10 years, half of XPeng's sales will come from overseas, striving to become the number one Chinese mid-to-high-end new energy brand in terms of overseas market share. This requires close collaboration between our international teams and domestic departments to work together!

XPD 2.0 Launch: A Higher Starting Point for the XPeng System Standard

On the first day of the new year, we will welcome an important milestone in the iteration of the XPeng system—the official launch of XPD 2.0 (XPeng Product Development System)! This marks that our product development has reached a higher starting point characterized by XPeng's unique system standards.

Enterprise processes and tools are the foundation of XPeng's management. Relying on the system can enhance both baseline and top-line organizational capabilities (safety net + high scores), using the certainty of rules to respond to future uncertainties. The goal we set for the company's "four major horizontal process tool constructions" in 2024 is steadily progressing. XPD is the key first step in our system's self-improvement, driving product development from disorder to order, achieving replicable product commercial success is the mission of XPD.

Process work is not achieved overnight. In the new year of 2025, I hope all team members maintain strategic patience and determination, participating in process construction and self-iteration from a long-term perspective with a builder's mindset, continuously improving our XPeng characteristic product development system. On our new systematic path, we will lead with processes, iterating continuously to achieve replicable product commercial success, seizing the once-in-a-decade opportunity of technological transformation, and realizing XPeng's positive cycle and favorable growth.

In the Best of Times, Do the Greatest Things with Like-Minded People

I have always emphasized that XPeng is a technology startup that adheres to an open attitude towards talent acquisition. Throughout this journey, many outstanding talents have emerged from within our organization, and many industry leaders have joined our team, making our organization a more solid concrete structure, unleashing tremendous power. The talent pool combining "old, middle-aged, and young" is growing stronger, collaborating, complementing each other, and working together steadily for the long term, sharing the fruits of victory. In the best of times, doing the greatest things with like-minded people, we must adopt an open and inclusive attitude, engage in cross-regional and cross-cultural communication and integration, and gather global talent to create more job opportunities for society Next year, we will further expand our recruitment scale, hiring more than 6,000 employees, and continue to fulfill our social responsibilities and mission. Let's work together to embrace a brand new decade.

There is also good news: many "old classmates" who left XPeng for various reasons have recently returned to the family. We have also launched an excellent employee return and internal referral policy, as well as new job recruitment needs. We welcome current colleagues to inform former comrades, classmates, and colleagues about the opportunities and changes in the company, and to recommend and invite "like-minded" new and old classmates to fight alongside us.

Finally, what I want to say most is thank you. Thank you to everyone who has accompanied us, thank you to everyone who has persevered against the wind, and thank you to everyone who has been persistent in moving forward. It has not been easy along the way. The XPeng people, who have weathered the storm, have accumulated enough strength on the road ahead. We will go further, more confidently, and with more composure. In 2025, XPeng is ready, Passion!

In the new year, I wish all classmates once again, full of vigor and youthful spirit!

On the new journey of 2025, let’s move steadily and continue to run together!

He Xiaopeng

December 31, 2024