This boss is preparing his troops for the 2025 price war

In an internal memo, He Xiaopeng, CEO of XPENG, warned his teams that an unprecedented price war will erupt starting January 2025.

According to XPENG’s leader, 2025 is shaping up to be a major turning point for the electric vehicle industry, marked by an unprecedented level of competition. He Xiaopeng notes that this fierce rivalry is taking place in the context of ongoing market consolidation in China, scheduled between 2025 and 2027. The growing adoption of electric vehicles, though encouraging, is pushing industry players to cut profit margins amidst rising costs and increasing product homogeneity. Those unable to differentiate themselves through key assets such as technological innovation or impactful marketing strategies are likely to disappear.

For XPENG, this price war will be a crucial test. The CEO emphasized the importance of enhancing the company’s capabilities to maximize efficiency and establish competitiveness. Innovation and artificial intelligence will play a central role in this strategy, with the ambition to make Xpeng a global leader in connected vehicles within a decade.

However, this battle won’t be limited to China. XPENG plans to accelerate its internationalization by doubling its foreign presence. From 30 countries today, the company aims to be active in more than 60 markets by the end of 2025. He Xiaopeng even declared the goal of generating 50% of its sales abroad by 2035, strengthening its image as a global pioneer of premium NEVs (New Energy Vehicles).

In parallel, XPENG forecasts a rapid pace of innovation with the quarterly launch of new models, while mass recruiting with over 6,000 hires expected next year.

This announced price war could reshuffle the global automotive landscape, and XPENG is already positioning itself at the forefront to emerge victorious.

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