In an attempt to survive what it refers to as a “bloody sea” of competition in the biggest auto market in the world, Chinese electric carmaker Xpeng said that it would hire 4,000 new employees this year and invest millions in artificial intelligence.
With the new hires, the Volkswagen-backed EV maker’s workforce would have grown by 25% from its most recent headcount of 15,829 at the end of 2022.
On Sunday, the first working day following the Lunar New Year break, Chief Executive He Xiaopeng announced the expansion in a letter to staff members.
He added that Xpeng intends to introduce about 30 new products or updated models within three years. The company would also invest $486.36 million in AI research and development for intelligent driving.
He said, “Facing the pessimistic macroeconomic situation, many business partners are drawing back and afraid to invest. I think this is an opportunity for our development.” According to He, 2024 will mark the start 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.”
As opposed to rivals who are scrambling to reduce costs, Xpeng wants to grow. Despite recent reductions led by Tesla, demand is still low in the world’s largest vehicle market.
Another Chinese EV manufacturer, Nio, declared in November that it will reduce employees by 10% in order to boost efficiency in response to growing competition.
With local demand in decline, Chinese automakers have resorted to exports as a means of growth. However, China’s growing power as an automobile exporter is causing difficulties overseas.
China’s commerce ministry said earlier this month that it will assist the industry in adapting to trade barriers and collaborating with international businesses, despite an ongoing European inquiry into Chinese subsidies for the new energy vehicle sector.
VW announced in July that it will invest almost $700 million to purchase a 4.99% stake in Xpeng.
This year marks Xpeng’s eleventh year in the role, and He has no intention of slowing down. “We must increase our output by more than twice as much,” He said.
