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xpeng's ten years: what has changed and what hasn't

2024-08-29

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august is of great significance to he xiaopeng.

this is the 20th anniversary of his founding of uc and the 10th anniversary of the founding of xiaopeng. these two companies, one made him achieve financial freedom before the age of 40, and the other made him feel like "swimming in a sea of ​​blood."

but he also insisted on swimming until the sea turned blue.

xpeng motors, a car company that originated in an unair-conditioned office in guangzhou huangpu talent building, has witnessed the rapid expansion of china's new energy vehicle track and achieved a three-legged stand among new car-making forces. the company once printed the five big words "stinking on technology" on its company t-shirts. with a strong technological background, it is also known as china's car company most like tesla.

he xiaopeng once said, "making cars is a long-distance race. it is a taboo to step on the accelerator and the brake at the same time. the big opportunity is to proceed steadily and pursue the compound growth of polygon warriors."

looking back over the past few years, the adjustment of organizational structure has become a weapon for xiaopeng to increase sales; the cooperation with volkswagen has become the blood bank for xiaopeng's revenue recovery; and the newly born mona and ai ammunition depot will become the sharp sword that xiaopeng will unsheathe after years of accumulation.

"xpeng motors will be an explorer of future mobility and a global ai car company."

the determination to change the name announces xiaopeng's pace and ranking in the next decade-long race. from the perspective of technical core, xiaopeng is still the same xiaopeng.

ten years of hard work, the breaker of high-level intelligent driving

people who start businesses all believe that they can create miracles.

in order to build a truly smart car, xiaopeng decided to rebuild david 1.0, paying an additional 428 million yuan for it. it was not until 2018 that xiaopeng g3 was launched on the market, bringing a new disruption to the industry in terms of smart driving and voice interaction.

2019 was the most difficult year for new car-making forces. nio, xiaopeng and li auto were called the three fools in car-making at that time. when xiaopeng was in the most difficult time, he xiaopeng invested 200 million us dollars out of his own pocket. until the launch of xiaopeng p7 in 2020, xiaopeng welcomed its first best-selling model and became the number one new car-making force at that time.

on august 27, 2020, xpeng was listed on the new york stock exchange. this year, the new forces in car manufacturing began to attract everyone's attention.

four years later, being one of only two car companies in the world to achieve end-to-end large-scale model implementation has once again become xiaopeng's most obvious label.

this is his determination to develop smart cars and also his foresight into the ai ​​era.

in his opinion, in the next 10 years, annual sales of 1 million vehicles will become the ticket to the ai ​​car finals. in order to get this ticket, xiaopeng's self-developed turing chip was officially unveiled. this chip was successfully taped out on august 23 and is the world's first ai chip that is simultaneously used in ai cars, ai robots and flying cars. the turing chip is equipped with a 40-core processor and is designed for l4 autonomous driving research and development. its computing power is three times that of existing chips. for driving scenarios, the chip has carried out many functional optimizations and specially designed an independent safety island to achieve real-time blind spot monitoring of the entire vehicle.

the launch of this l4 autonomous driving chip will also make it possible for xiaopeng to implement an end-to-end large model.

at present, xiaopeng has achieved l2 level assisted driving with "light map, easy driving across the country"; according to he xiaopeng's plan, by the fourth quarter of this year, xiaopeng will achieve "light radar, light map, door-to-door smart driving experience"; and by the second half of next year, xiaopeng will achieve l3-like intelligent assisted driving, that is, reaching waymo's current level, with less than 1 takeover per 100 kilometers; finally, by 2026, 99% of extreme problems will be solved, and in some low-speed scenarios, people can even drive without being in the driver's seat.

ai is put into practice, and mona takes the lead.

"the experience exceeds the 200,000 level and becomes the benchmark in the a-class pure electric market," xiaopeng boasted about mona m03.

the full english name of mona is “made of new ai”, and its positioning is to popularize ai smart driving cars around the world.

the entire mona m03 series is equipped with qualcomm 8155 chips and 16gb memory. a total of three models have been released, namely the 515 long-range version, the 620 ultra-long-range version, and the mona m03 max version, priced at 119,800, 129,800, and 155,800 yuan respectively. in terms of configuration, the world's lowest drag coefficient of 0.194 brings an energy consumption of 11.5kwh per 100 kilometers.

for users who pursue the ultimate smart experience, xiaopeng mona will also launch the xiaopeng mona m03 max version equipped with the full-powered xngp, which has the industry's only high-end intelligent driving solution within 200,000 yuan - it can achieve city navigation and even door-to-door intelligent driving navigation. this version will start delivery after the spring festival in 2025.

on the evening of the press conference, less than an hour after the car was launched, xiaopeng officially released a poster, and the total number of orders exceeded 10,000 units.

second entrepreneurship, a "scraping the bone to cure the poison" transformation

to be able to release today's technology, xpeng motors, which was established ten years ago, has almost experienced a "re-invention".

this year is the second year of xiaopeng's "from 1 to 2, second entrepreneurship" and the second year of organizational adjustment. in 2022, after xiaopeng finally passed the market verification period of its first-generation products such as g3 and p7, an unexpected crisis began to hit. the 2022 g9 is xiaopeng motors' strategic model to impact the 300,000 high-end market, but after it was officially launched, the feedback from the outside world was very negative because the versions of g9 were numerous and confusing.

he xiaopeng took decisive action and launched a new configuration list with major changes just 48 hours later, making two key functions related to "intelligence" standard for all models. moreover, giving users a profit without changing the price was an unprecedented move, and xiaopeng paid a huge price for it.

for a long time, the confusing product positioning of xpeng has been the main reason for its criticism. its products cover three major categories, namely sedans, suvs and mpvs, and four sizes, namely small, compact, medium and medium-large. however, apart from intelligent driving, it has not been able to establish a clear brand mind based on consumers' emotional perception.

in he xiaopeng's own words, in the past year, xiaopeng has undergone a round of internal changes that were like "scraping the bone to cure the poison", and the scope of the changes covered many aspects of xiaopeng's internal organizational structure, channels, r&d and so on.

it was also in order to sort out xiaopeng's system that he xiaopeng invited wang fengying to help out.

in january last year, wang fengying officially joined xiaopeng motors as president, fully responsible for the company's product planning, product matrix and sales system. in terms of sales channels, wang fengying carried out drastic reforms: the sales regions of the two major channels across the country were removed and divided into more than 20 sales areas; and a hybrid model of "self-built direct sales + authorized dealers" was adopted on the terminal network to optimize the problem of internal order grabbing between self-operated stores and franchise stores.

he xiaopeng described that wang fengying knew what was going on when she asked about countless cost details. "for example, for seats, wang fengying knew where to use nappa leather and where not to use it. she knew how much higher the cost was. she had comprehensive expertise in many aspects related to car details and hardware."

under wang fengying's management and reforms, xiaopeng motors gradually got rid of the crisis brought about by the unfavorable listing of g9 and rebounded from the bottom: g6 became a hit after its launch, the new g9 came back to life, and the pure electric mpv xiaopeng x9 was also widely praised.

as of the end of june 2024, xiaopeng's physical sales network has accumulated 611 stores, with about 100 stores added this year, of which about 70% are dealer stores.

at the end of 2023, zhang peng, the founder of geek park, asked he xiaopeng, what is your biggest cognitive progress this year? he xiaopeng thought for a while and answered: organization is the only certain compound interest for automobile companies.

"give me another 18 months, and my management skills will be able to compete better in the fierce competition, both in china and overseas."

it is hard to imagine that without this organizational change, he xiaopeng would have been able to make such bold statements beyond technology.

join hands with the public to create more ai imagination

a month ago, it was revealed that hundreds of volkswagen engineers had moved into the xpeng motors headquarters in guangzhou to work. the xpeng headquarters has set up an office area for the volkswagen team and hung up a sign that read "vw project."

not long after, xpeng motors issued an announcement on the hong kong stock exchange, stating that following the signing of a strategic cooperation framework agreement on electronic and electrical architecture technology with volkswagen group in april 2024, the company signed a strategic cooperation and joint development agreement on electronic and electrical architecture technology with volkswagen. both parties will devote their full efforts to developing industry-leading electronic and electrical architecture for volkswagen's cmp and meb platforms produced in china, and the first model equipped with it is expected to be mass-produced in approximately 24 months.

at the volkswagen group night in april, volkswagen ceo bared praised xiaopeng again. he compared the technical strategic cooperation with xiaopeng in electronics and electrical to the foundation for volkswagen to build smart connected cars in the future. "in the future, volkswagen will continue to deepen cooperation with xiaopeng and jointly customize products that meet local needs for china."

xpeng motors also updated the progress of the cooperation in its first-half financial report: "we will devote all our efforts to developing industry-leading electronic and electrical architectures for volkswagen's cmp and meb platforms produced in china."

the financial report shows that xpeng motors earned 1 billion yuan from its cooperation with volkswagen in the first quarter of 2024. in the growth of xpeng motors' service and other revenues in the second quarter, it still stated that this was related to the strategic technical cooperation with volkswagen group on platform software.

looking back at xpeng's company gross profit margin in the four quarters of 2023, and after starting cooperation with volkswagen group this year, xpeng's company gross profit margin rose to 12.9% in the first quarter, and continued to rise in the second quarter, reaching a peak of 14.0%.

these simple financial report data prove xpeng's ability to sustainably realize intelligent driving technology in automobiles, and also represent more imagination in the ai ​​era.

and this is exactly the wall of differentiation that xiaopeng has built over the past ten years.

it is undeniable that xiaopeng is destined to have a difficult time in the next ten years. judging from mona, the price range of 100,000-150,000 yuan has always been the comfort zone of byd, the king of sales. new forces such as nezha and leapmotor are heavily deployed in this area. traditional car companies such as changan deep blue, geely galaxy, and gac aion also have many new products. if xiaopeng m03 wants to gain a foothold in this market segment, it will be a fierce battle.

but by improving the company's internal strength step by step, rushing to the heights of intelligent driving, and slowly laying out the rhythm of new cars... xiaopeng, which is already 10 years old, has begun to deeply understand the rules of steady progress.

from this perspective, the past decade is more like the prologue of xiaopeng motors. the future ai era may allow xiaopeng to truly soar.