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In Depth: How XPeng Got Back Into Gear After Stalling in 2022

In Depth: How XPeng Got Back Into Gear After Stalling in 2022

Chinese EV startup kicked off a restructuring that ultimately improved the efficiency of its sales network, streamlined supply chain management and concentrated control with the CEO

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Caixin Global
Jan 18, 2024
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Caixin Global China Watch
Caixin Global China Watch
In Depth: How XPeng Got Back Into Gear After Stalling in 2022
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Following a spate of rapid growth in previous years, XPeng Inc. in 2022 faced its biggest crisis since its founding. Co-founder He Xiaopeng was watching his then eight-year-old electric-vehicle (EV) namesake startup languish, dragged down by a problematic sales culture, weak supply chain management and poor corporate management, not to mention the weight of external factors including declining demand and a looming price war stunting sales growth.

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The end of 2022 was a tough moment for XPeng. And the whole sector was in overdrive rushing out models and corralling customers to place orders before government subsidies for EVs stopped at the end of the year.

Serious changes were needed at the company, which is dual listed in Hong Kong and New York. With larger shareholders voicing concerns, XPeng kicked off a major overhaul of its corporate structure, which would ultimately improve the efficiency of its sales network, streamline supply chain management, and concentrate decision making with He and a select few executives.

XPeng faced business growth challenges throughout 2022, reflected by the modest 23% growth in annual vehicles shipped, compared with 2021 and 2020, when deliveries surged 263% and 113%, respectively. The gloomy trend persisted into the first half of 2023, when it delivered 41,435 vehicles, down 40% year-on-year. 

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