Xpeng plans 30 new models to survive Chinese competition

Chinese EV company Xpeng will launch 30 new models in the coming three years to survive what its Chairman and CEO He Xiaopeng called a 'sea of blood' --- the competition between Chinese brands in their home market.

"Xpeng has accumulated considerable experience by fighting in a sea of blood and fierce competition from the very beginning, and I believe perseverance will lead to victory," he said in the letter. The new models would help bridge the price band between $13,000 and $55,000 vehicles in China, the letter said.

China, the world's largest EV market by volume, is also home to some of the industry's biggest brands. Top spot is taken by BYD, the world's largest EV maker, which accounts for four of the top five and seven of the top 20 best-selling EVs in China. In a recent power move, BYD decided it would move upscale and also foray into the US market, even as it launched a new model 20 percent cheaper than the variant it replaced.

Xpeng, founded in 2014, boasts a range of EVs such as P7 and P5 sedans, the G3i and G9 SUVs, as well as the recently announced X9 multi-purpose vehicle and G6 SUV.

But the chairman's letter indicates the company is looking to dramatically expand its lineup amid intensifying competition. Xpeng is looking to hire around 4,000 new people, even as its research and development budget will rise than 40 percent this year to help it "fight for tomorrow", the chairman said.

The company plans a $20,000 A-class vehicle under the 'MONA' brand, acquired following the company's 2023 purchase of Chinese ride-hailing giant Didi's EV development business.

He Xiaopeng has also reportedly told employees that MONA EVs could utilize the company's Fuyao architecture, which debuted in the G6 sedan, as well as the company's assisted driving technology.

The company also plans to launch a new EV (codenamed F57) in the $40,000 and above price bracket in the second half of 2024.