Xpeng revealed its intentions to hire 4,000 workers this year and invest millions in artificial intelligence to survive competition in the world’s largest auto market.
Chinese electric car manufacturer Xpeng (9868.HK) opened a new tab and announced plans to hire 4,000 people this year and invest millions in artificial intelligence in order to survive what it calls a “bloody sea” of competition in the world’s largest auto market.
The new personnel would represent a 25% increase in the Volkswagen-backed EV maker’s workforce from its current headcount of 15,829 at the end of 2022.
Chief Executive He Xiaopeng announced the expansion in a letter to staff on Sunday, the first working day following the Lunar New Year break.
The company would also invest 3.5 billion yuan ($486.36 million) in AI research and development for intelligent driving, he said, adding that Xpeng aims to deliver approximately 30 new or upgraded products.
“Faced with the negative macroeconomic scenario, many corporate partners are hesitant to invest. “I believe this is an opportunity for our development.” He described 2024 as the first year of the “knockout round” for Chinese automakers. “In 2024, we will buck the trend and enter a high-speed positive cycle in the fourth quarter or earlier.”
Xpeng’s expansion plans stand in stark contrast to competitors, who are scrambling to cut costs. Despite Tesla’s (TSLA.O.) increased discounting, demand in the world’s largest auto market remains weak.
Nio (9866.HK), another Chinese EV maker, announced in November that it would reduce its personnel by 10% to boost efficiency in the face of increased competition.
Faced with weakening domestic demand, Chinese automakers have turned to exports to drive growth. However, China’s expanding influence as a vehicle exporter is causing conflict internationally.
China’s commerce ministry said earlier this month that it will encourage the new energy vehicle industry to adapt to foreign trade barriers and collaborate with foreign enterprises, amid a European investigation into Chinese subsidies to the sector.
Volkswagen said in July that it would invest approximately $700 million in Xpeng, acquiring a 4.99% share of the company.
“This is Xpeng’s tenth year. “Our performance must more than double,” he stated.
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