He Xiaopeng’s internal letter was exposed, 30 new car models in 3 years!

On the first day of work in the new year, bosses will always express something, some will send red envelopes, and some will write an open letter. No matter what form it takes, it is all to enable the entire company to face the challenges and opportunities of the new year with full hope.

A classic old picture: Ma Huateng, chairman of Tencent’s board of directors, sends out a red envelope for the start of work

As the boss of a Guangzhou company, He Xiaopeng not only gave red envelopes to his employees, but also invited a dragon dance team to add glory to the headquarters of Xiaopeng Motors.

The dragon's head moves up and down, followed closely by the dragon's body, and the dragon's tail leaps forward vigorously, like a river turning over the sea. He Xiaopeng stood in the middle of the crowd, applauding and applauding.

At the same time, his open letter was not left behind.

In order to better respond to customer needs, we have just spent a "non-closing" New Year holiday :-).

He Xiaopeng first praised the employees who stayed at their posts during the Spring Festival. He said that Xpeng Motors' global teams in the United States and Europe are operating normally, while in China, product, R&D, production, stores, service centers, 400 and other teams are operating normally. There are also a large number of positions responsible for operational support, and they will go to work as usual.

Of course, this letter is not only an affirmation of the past, but also an expectation for the future. For 2024, He Xiaopeng’s plans are exciting.

"This year is Xiaopeng's tenth year, and its performance will more than double," He Xiaopeng said.

In the past 2023, Xpeng Motors delivered a total of 141,600 new cars, a year-on-year increase of 17%. In 2024, He Xiaopeng's goal is 280,000 vehicles, which is doubling. However, compared with Li Auto's 800,000 vehicles and Wenjie's 600,000 vehicles, Xpeng Motors' goal is quite conservative, which is not unrelated to the setbacks it encountered last year.

In August last year, Xpeng Motors released its worst quarterly financial report in history, with revenue falling 31.9% year-on-year, cash reserves further shrinking, and losses continuing to expand. At the same time, Xpeng Motors' gross profit margin has also hit the bottom, at -8.6%, far behind Ideal and NIO.

In the third quarter, driven by the Xpeng G6, Xpeng Motors' revenue increased by 68.5% quarter-on-quarter. Although its net loss was still expanding, its revenue, gross profit margin, and cash flow were all in the third quarter. Quarter-over-quarter growth. He Xiaopeng said at the time that Xpeng Motors had achieved a low-speed positive cycle.

In He Xiaopeng's New Year open letter today, he stated that Xpeng Motors will enter a high-speed positive cycle in the fourth quarter of 2024 or even earlier . His confidence comes from two aspects:

3 years, 30 new cars

Last year, Xiaopeng built two products, the G6 and P7i, under the Fuyao architecture, and also supplemented the P5 and G9, but in He Xiaopeng's view, this is far from enough. In his letter he revealed:

Xpeng Motors plans about 30 new products and facelifts within three years. Specifically, by 2024, Xpeng Motors will bring two new cars, anchored in the price range of 300,000 yuan and 150,000 yuan respectively, completing Xpeng Motors' layout in the 100,000-400,000 yuan level.

The two new cars that He Xiaopeng mentioned were exposed a few years ago. They are a medium and large crossover code-named F57 and a compact sedan code-named MONA. The former will be positioned higher than the P7, with more emphasis on spaciousness and comfort. The latter is the first model to be cooperated by Xiaopeng Motors and Didi, and will share the burden of balancing smart driving costs and improving vehicle profits with the F57.

▲F57 taken at Xpeng Guangzhou Huangpu Factory

▲MONA

Of course, there is also the Xpeng X9, a pure electric MPV worth 359,800 yuan. Its strong product power has quickly made this car a "catfish" in the MPV market. But even so, the price of the Xpeng X9 is still significantly higher than that of the Xpeng X9. Peng Motors’ other product lines are expected to improve Xpeng’s profitability. Xpeng Motors also previously stated that the Xpeng X9 is the product with the highest gross profit margin in its current product portfolio.

The financial report pointed out that thanks to the company's continued cost reduction and the arrival of new products on the Xpeng X9 and 2.0 platforms, the gross profit margin in 2024 is expected to increase significantly compared with 2023.

▲Xpeng X9

A more complete product matrix requires a more solid foundation. He Xiaopeng made it clear in the open letter that Xpeng Motors will invest more than 40% of its R&D budget in 2024 year-on-year, including US$3.5 billion in AI technology with smart driving as its core . At the same time, more manpower will be invested and approximately 4,000 people will be recruited.

"Let cadres who dare to fight and can fight lead the troops," He Xiaopeng said.

Efficient management

The most correct thing He Xiaopeng did in 2024 was to find Wang Fengying. Under the leadership of this veteran car man, Xiaopeng carried out frequent organizational changes last year, and the top leaders of the sales system, automotive powertrain center, styling center, autonomous driving center, and purchasing department were all replaced.

In the open letter, He Xiaopeng particularly emphasized the importance of team leadership. In his view, strong leadership will be the key to Xpeng Motors' overall collaboration and business growth. Especially in the current economic environment, precise control of human resource investment is very important.

Facts have proved that from correcting the positioning of Xpeng G6, rectifying retail channels, and reducing procurement costs, Wang Fengying used her more than 30 years of experience in the automotive industry to put Xpeng Motors, whose life was hanging by a thread, on the right track.

He Xiaopeng is also doing it himself. Starting from 2022, he will directly manage the styling and design team. During this period, Delta Emanoel, vice president of Xiaopeng's styling design, left Xpeng last year, and Wang Tan, vice president and chief designer of Xpeng Huitian, also took charge of design work. He Xiaopeng said that 2024 will be the year for Xiaopeng Motors to upgrade its strategy in the design field. In the future, design will become Xiaopeng’s strong point.

▲Xpeng X9 adopts “starship” design language

On the other hand, the construction of system capabilities will also become the development focus of Xpeng Motors in 2024, which includes:

  • The new Xpeng Product Development System (XPD) makes the R&D process more advanced and efficient
  • Upgrade the marketing strategy and integrate the marketing strategies of automobiles, Internet and mobile phones.
  • Xpeng Internationalization V2.0, deploying markets in Europe, ASEAN, the Middle East, Latin America, Oceania and other regions

As Xpeng Motors makes comprehensive improvements in R&D, production and marketing, we have reason to expect it to bring more surprises and achievements in the new year.

The following is the original text of the open letter:

Fellow students,

Happy New Year! Today is the first day of work during the Chinese Lunar New Year. I wish every student a dragon-horse spirit and a happy family! I wish the business team a smooth start to the Year of the Dragon and prosperity!

In order to better respond to customer needs, we have just spent an "open" New Year Festival :-). Global teams in the United States, Europe and other countries are operating normally, while in China, products, R&D, production, stores, service centers, 400 and other teams have a large number of front-line students and middle and back-end students who provide operational support and stick to their posts during the Spring Festival holiday. Thank you for your hard work!

"Pain and happiness, dare to think and dare to do" is the true portrayal of Xpeng people in 2023. Last year, there were a lot of adjustments in organization, planning, business, operations, and efficiency. We experienced a lot of pain, but also achieved huge gains. The three major management orientations of customer orientation, business thinking, and overall collaboration are effectively implemented in business practice, insisting on using the right methods, and doing difficult and right things, allowing us to embark on a completely different path from other companies in 2023 and start Bottom up. In the new year, how can we seize the new opportunities in the Year of the Dragon and achieve greater progress? I would like to share with you my ten thoughts.

Step by step to win

This year is Xiaopeng’s tenth year. Its performance must more than double, the organization must make up for all shortcomings, and its operations must take the first step towards high quality.

This year is the first year that Xpeng’s products and technology platforms have accumulated and exploded. About 30 new products or revised models are planned within 3 years; in 2024, we will invest more manpower (recruiting about 4,000 people) and invest more than 40% of the R&D budget year-on-year to strive for tomorrow. Starting from this month, we will use the new Xpeng Product Development System (XPD), which is the full life cycle product development management system V1.0 for models with Xpeng characteristics, to help the company achieve success with a more advanced and efficient full-process system. greater success.

This year is the first year that Xpeng takes the lead in moving towards high-end intelligent driving and bringing high-end intelligent driving from China to the world. The annual R&D investment in "AI technology with intelligent driving as the core" totals 3.5 billion yuan.

This year is the first year for Xpeng’s marketing strategy to be strategically upgraded. It is the first year to integrate and develop the marketing strategies of automobiles, the Internet and mobile phones. No matter how challenging it is and how much investment we have, we must integrate it in the shortest possible time. Xpeng’s brand and marketing are undoubtedly the first in the industry;

This year is the first year for Xiaopeng to upgrade its strategy in the design field. The three modeling centers are running in parallel. Modeling must be as strong as Xiaopeng's AI, marketing, and operations.

This year, Xpeng will release the first car of the platform on the 300,000+ level and 150,000 level platforms, completing two important cornerstones of Xpeng's layout in the 100,000-400,000 level.

This year is the first year of Xpeng's internationalization V2.0. It will deploy core markets in Europe, ASEAN, the Middle East, Latin America, Oceania and other regions, deepen the intelligent advantages of its products, and strengthen the local adaptation of its products (including left-hand drive, Right rudder), comprehensively creating a new path to globalization from products, intelligent driving, and brands.

This year is the first year for Chinese automobile brands to enter the "bloody sea" competition, which is also the first year of the knockout round. Xpeng Motors has been fighting fierce competition in the "bloody sea" since the beginning and has accumulated considerable experience. I believe that persistence will lead to victory.

This year is the second year of Xiaopeng’s “From 1 to 2, Second Entrepreneurship”, and it is also the second year of organizational adjustment. I will personally focus on the grassroots cadres of the enterprise and the enterprise process level to enhance their capabilities and pursue the improvement of management capabilities. and overall business efficiency improvements.

This year, we will improve the customer experience throughout the entire process and implement operations with greater breadth and depth (save money that should not be spent, spend more valuable money on people, R&D and strategy, and achieve better business profits), From strategic planning to overall coordination of OKR, five aspects including the implementation of PDCA actions and the training and coaching of cadres will continue to be deepened.

Let cadres who dare to fight and can fight lead the troops.

Cadres are the first persons responsible for the efficiency and effectiveness of their organizations. "One man is in charge, and ten thousand men cannot open it" – the key to victory in every positional battle lies in each cadre. As a commander on the battlefield, whether he dares to fight a tough battle and whether he takes the lead determines whether the team can move forward bravely and fight against the odds. Potential to win. To cope with the challenges of the new year, the combat effectiveness of the cadre team must be raised to a higher level.

Seeking truth from facts: Cadres cannot just listen to reports. They must penetrate multiple layers to understand the real situation. They must go deep into the front line to listen to the artillery fire, and promote the implementation of the company's strategic strategies at the grassroots level to ensure that they can defeat their opponents in terms of effectiveness and efficiency. Don't cover up problems, report good news to superiors instead of bad news, do what you say, and achieve your mission.

Overall coordination: Cadres should be oriented by internal and external customer experience, take the lead in breaking down departmental walls and knocking down tall chimneys, not sacrificing upstream and downstream for single interests, nor pursue superficial harmony, and take the initiative to go the extra mile for the overall benefit in cooperation. Only in this way can the enterprise's value output be maximized.

Grow into an "operator": Promote business growth with a simple and efficient style, a courageous and responsible attitude, and business thinking; lead by example at all times, take the lead in self-reflection, self-discipline, and self-activation. Not only must you have strong professional capabilities, but you must also continue to improve your management capabilities. Activate the team to produce extraordinary results in ordinary positions.

Facing the pessimistic macroeconomic situation, many business partners are shrinking and are afraid to invest. I think this is an opportunity for our development. In 2024, we will buck the trend and enter a high-speed positive cycle in the fourth quarter or earlier.

In the new year, Dragon Chong appears, and the gears of the times are turning. During the Spring Festival, the smart driving mileage of Xpeng car owners increased by more than 2.71 times year-on-year. From the usability of XPILOT to the ease of use and love of XNGP, the way people drive is truly changing. I believe that with the improvement of our capabilities in the entire field of smart cars, all students will witness with me the rapid growth of Xpeng Motors this year.

Once again, I wish the students a glorious new year and good luck in the Year of the Dragon!

He Xiaopeng

February 18, 2024, the ninth day of the Jiachenlong Lunar New Year

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