XPeng Motors Denies Suppliers are Reducing Costs of Materials
A recent screenshot circulated on a Chinese network showed that an anonymous user who claimed to be from a company in the upper supply chain of XPeng Motors, a Chinese electric vehicle company, posted a message saying, “All the manufacturing factories that have worked for XPeng Motors are selling materials at low prices in the past few days. To be frank, it’s hard for XPeng Motors to get the goods.” On March 16, XPeng Motors responded to Chinese media and said that it was “false information.”
In terms of sales performance, XPeng Motors is indeed under great pressure. Since September last year, its sales have been in decline. According to official data, from September to November of last year, the monthly sales volume of XPeng Motors was 8,468 vehicles, 5,101 vehicles and 5,811 vehicles respectively, down by 18.67%, 49.7% and 62.8% year-on-year, and the decline in sales volume expanded month by month.
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In the start of 2023, it still didn’t perform well. XPeng Motors delivered a total of 5,218 vehicles in January, down 59.62% year-on-year; A total of 6,010 vehicles were delivered in February, down 3.45% year-on-year. XPeng Motors was surpassed by not only NIO and Li Auto, but other Chinese brands such as NETA Auto, AITO, Leapmotor and Zeekr.
XPeng Motors is trying to turn the tide by adjusting its organizational structure. Since October 2022, it has been promoting a series of organizational restructurings. According to the information released by the company, it has established five virtual committee organizations, including strategy, production regulation, technical planning, production and marketing, and OTA Committee, and three product organizations: E, F and H platforms. The former two are responsible for improving the communication and collaboration efficiency of various business lines, while the latter is for opening up the closed loop of end-to-end products.
On January 30 this year, XPeng Motors officially announced that Wang Fengying will be the president of the company, and will be fully responsible for product and sales systems. She will report to He Xiaopeng, chairman and CEO of XPeng Motors.
On March 15, it was also reported that the company has restructured its marketing system by merging its auto trade and user development service teams and establishing over 20 sales regions in China.