In He Xiaopeng's work commencement letter about DeepSeek: In the next decade, AI will drive significant changes in automobiles | Exclusive from 36Kr.
Author｜Anqi Li
Editor｜Qin Li, Xuan Yang
The momentum of XPeng Motors' turnaround has persisted from the end of last year to the present. In January of this year, with 30,000 vehicle deliveries, XPeng Motors regained the top position in the monthly sales list of new energy vehicle companies, and its delivery volume has exceeded 30,000 units for three consecutive months.
On February 5, the eighth day of the first lunar month, 36Kr exclusively obtained the internal startup letter of He Xiaopeng, the Chairman and CEO of XPeng Motors. Regarding future competition strategies, organizational mission, AI transformation, strategic implementation, talent reserves, etc., He Xiaopeng has pointed out new directions and requirements.
"Last year was a year when we were 'in a fierce competition', but until the fourth quarter, we achieved a contrarian growth," He Xiaopeng said.
For example, both new models show a trend of being best-sellers. MONA M03 has delivered more than 15,000 units for two consecutive months, and the cumulative delivery of P7+ has exceeded 20,000 units in two months. With this momentum, the market value of XPeng Motors has returned to the level of hundreds of billions of Hong Kong dollars.
This is a rare counterattack moment for XPeng Motors since it encountered a deep crisis in 2022. The sales of XPeng Motors in 2022, 2023, and 2024 are 120,000, 141,600, and 190,100 respectively, with a gentle increase. However, according to a previous report by 36Kr Auto, XPeng's initial sales target for 2025 exceeds 350,000 units, with a growth of more than 80%.
Facing the future competitive situation, He Xiaopeng believes that 2025 - 2027 will be the most intense three years in the Chinese automotive industry. "These are the most crucial three years for us, and at the same time, they must also be the three years with the most opportunities."
In the new year, XPeng Motors is trying to take advantage of the situation to move upward steadily and far. "We should cherish the hard-won upward momentum, and the essence of momentum is confidence," He Xiaopeng wrote.
In terms of the core product strategy, He Xiaopeng said that in the next three years, we should refine, differentiate, and globalize our product map. In 2025, XPeng plans to launch several new models and annual facelifts, including the first super electric version of the new model, and there will be heavyweight new products and facelifts almost every quarter.
According to public information, XPeng's new model G7 is planned to be released in the first half of 2025, and the first extended-range model is planned to be released in the second half of 2025.
He Xiaopeng also mentioned the recent shock in the AI industry. He said that the Chinese technology company DeepSeek has shocked the global technology circle, not only achieving a product experience comparable to OpenAI's large model, but also compressing the cost to an extremely low level.
He believes that in the next ten years, AI will drive huge changes in the automotive industry and also drive huge changes in hardware and software worldwide.
"In the next ten years, we want to build XPeng into an 'AI automotive company for the global market', achieving all-round leadership in products (technology), business, organization, and globalization."
He Xiaopeng reaffirmed the company's mission: to become an intelligent technology enterprise loved by global users.
He believes that AI based on large models will accelerate the advancement to high-level autonomous driving. In the specific progress, he pointed out that the penetration rate of high-level intelligent driving in China has exceeded 10% in 2024.
And XPeng has already made layouts in hardware, chips, software, large models, products, etc. In the second half of this year, XPeng will achieve L3-level full-scenario autonomous driving. Previously, He Xiaopeng once said that in 2025, XPeng's L3-level intelligent driving will be able to achieve less than one takeover per 100 kilometers.
"I believe that L3-level autonomous driving will drive AI vehicles into the 'iPhone 4 era'."
In terms of the global market, in 2024, XPeng became the first Chinese new energy vehicle brand to deliver 10,000 units in Europe and entered 30 overseas markets. He Xiaopeng expects that in 2025, the overseas business will expand to more than 60 countries and regions, becoming the number one in export sales of Chinese new energy brands.
However, the internal also sees deficiencies, such as the poor performance of the global NPS (Net Promoter Score), etc., which is the key direction to be done well this year.
He Xiaopeng also emphasized the organizational combat capability. He said that the core task this year is to move steadily and far, and to respond to the rapid external changes. The strategic planning meetings will also be held multiple times for short-cycle agile fine-tuning; at the same time, the strategic implementation should be interlocked with OKR, and the teams should achieve mutual promotion of goals and key results.
At the talent level, He Xiaopeng said that the company will vigorously strengthen the construction of the talent echelon. For example, the "Thousand Generals Plan" is aimed at reserving and operating cadres for core and key positions; the "Explorer Plan" will cultivate the endogenous power of the system, and the proportion of explorers will increase year by year starting from this year.
In addition, XPeng also plans to 扩招 more than 6,000 employees globally and invite outstanding former employees to rejoin.
The following is the full text of He Xiaopeng's startup letter "Move Steadily and Far, Head to the Blue Ocean in 2025":
Dear classmates, Happy New Year! Today is the eighth day of the first lunar month in China, and it is also our startup day. The snake dance ushers in a prosperous new year. I wish all the classmates a great deal of energy, the courage to strive for the top, and to achieve even greater success in the new year!
Before this year's Spring Festival, our manufacturing team went all out to accelerate deliveries and continuously set new records. The delivery volume of MONA M03 jumped from 50,000 units to 60,000 units in just 15 days. Before the Spring Festival, an additional 10,000 units were delivered, allowing more Pengyou to drive XPeng Motors home for the New Year. In addition, the full-scale push of XOS 5.5.0 before the Spring Festival brought a heavyweight OTA for the intelligent driving experience, allowing old car owners to also drive a "new car" for the New Year. In order to comprehensively protect the way home for car owners and Pengyou, we also provided 24-hour online services, free road rescue, and free vehicle inspections at charging stations.
The surprises and good experiences that Pengyou have obtained are definitely the result of the extraordinary efforts of the production, store, service, 400 and other teams, as well as a large number of front-line classmates and those who stuck to their posts during the Spring Festival holiday to ensure the operation. Everyone has worked hard!
Take Advantage of the Situation to Move Upward Steadily and Far
Last year was a year when we were "in a fierce competition". It was not until the fourth quarter that we achieved a contrarian growth. In January of this year, XPeng Motors delivered 30,350 units, with a year-on-year growth of 268%, becoming the number one in monthly deliveries among new energy vehicle companies, and achieving a great start in deliveries! XPeng Motors has delivered more than 30,000 units for three consecutive months, MONA M03 has delivered more than 15,000 units for two consecutive months, and the cumulative delivery of XPeng P7+ has quickly exceeded 20,000 units in two months. We at XPeng Motors have completed the first step of the counterattack through our own efforts.
On the surface, we have overcome the external distrust and reversed the situation. In fact, what we have overcome is ourselves, a self-rebirth.
I once said: 2025 - 2027 will be the most intense three years in the Chinese automotive industry. They are the most crucial three years for us, and at the same time, they must also be the three years with the most opportunities.
In order to welcome greater opportunities, XPeng in 2023 - 2024 is moving forward against the wind. After going through the storm, what awaits is the year 2025, when we can ride the momentum to move steadily and far. We should cherish the hard-won upward momentum. The essence of momentum is confidence, the confidence that investors, suppliers, partners, potential car owners, and car owner Pengyou have in us. It is very difficult to win this kind of confidence, and it requires a combination of a series of efforts. The most important logic of moving steadily and far is to maintain a stable and upward momentum. Once the momentum is up, everything will be more effective with less effort.
Facing the next three years, being refined, differentiated, and global on a clear product map is our core product strategy. Coupled with XPeng's systematic combat capability, it will be our strong backing to break out of the elimination round and enter the promotion round.
In 2025, we plan to launch several new models and annual facelifts, including the first super electric version of the new model. There will be heavyweight new products and facelifts almost every quarter. These new products are powerful "killer weapons" in their respective market segments.
Reemphasizing the Organizational Mission: Becoming an Intelligent Technology Enterprise Loved by Global Users
Around New Year's Eve, I believe everyone was刷屏 by the DS large language model. It has brought a shock to the global technology circle. It not only took the lead in achieving a product experience comparable to OpenAI's large model, but also compressed the cost to an extremely low level. Obviously, AI is bringing huge opportunities to all industries. In the past ten years, XPeng Motors was the first to embrace artificial intelligence and has been leading the industry in the application of automobiles + AI. In the next ten years, I believe that AI will drive huge changes in the automotive industry and also drive huge changes in hardware and software worldwide.
Riding the wave, in the next ten years, we want to build XPeng into an "AI automotive company for the global market", achieving all-round leadership in products (technology), business, organization, and globalization.
Facing this new historical opportunity, we reemphasize our mission: to become an intelligent technology enterprise loved by global users.
Currently, we are experiencing a transition from "able to drive across the country" to "driving well across the country". During the Spring Festival, more and more Pengyou drove XPeng intelligent driving vehicles home, and the public's perception of intelligent driving is being refreshed. I believe that AI based on large models will accelerate the advancement to high-level autonomous driving. It is exciting that the penetration rate of high-level intelligent driving in China has exceeded 10% in 2024! Intelligent driving has also become the primary reason for many car owners to choose XPeng P7+. Currently, global autonomous driving is ushering in a new turning point. For this reason, we have made cutting-edge layouts in hardware, chips, software, large models, and products. In the second half of this year, XPeng will take the lead in achieving L3-level full-scenario autonomous driving, bringing users an unprecedented intelligent driving experience. I believe that L3-level autonomous driving will drive AI vehicles into the "iPhone 4 era".
In terms of globalization, we have also achieved very good results. Just last year, XPeng Motors became the first Chinese new energy vehicle brand to deliver 10,000 units in the European market. During the Spring Festival, the G6 and G9 were launched in Dublin and Helsinki, and the Pengyou circle is expanding rapidly. It is expected that by 2025, the overseas business will expand to more than 60 countries and regions, and our goal is to become the number one in export sales of Chinese new energy brands. However, we also see many problems, such as the poor performance of the global NPS, etc. We need to seriously address and do a good job starting from 2025.
Looking back at the ten years of XPeng Motors' entrepreneurship, it is a decade of constantly welcoming huge opportunities and also facing huge challenges countless times. Today, we are competing with the world's most famous enterprises. In the overseas market, we should take the high-quality development route with high technology and high quality. Therefore, the requirements for each of us should be increased by ten times or even a hundred times. If we can achieve this, we will surely become world-class outstanding talents, and the team will surely be a world-class outstanding team.
Be Stable First and Then Fast, Move Further and More Calmly
Starting from 2025, the market competition will only become more intense. To break out of the elimination round, we need to play our cards well. The delivery capability forged in the continuous best-seller battles last year has laid a very solid foundation for the significant growth in sales this year.
In the face of opportunities and challenges, I have great confidence in everyone because we have experienced hardships together and gone from the trough to the upward trend. Those of us who have experienced the storm have the ability to move more steadily and further, and also have the ability to move more calmly.
1. Implementation of Moving Steadily and Far:
This year, our core is to move steadily and far to respond to the rapid external changes. The strategic planning meetings will also be held multiple times for short-cycle agile fine-tuning to ensure implementation and inspection and ensure stable development.
The strategic implementation should be interlocked with OKR. Each department and team should truly achieve mutual coordination and promotion of goals and key results. On this basis, the PDCA of OKR should also be done well. In the new year, I hope that every classmate will learn to continuously align goals with their superiors, continuously think about using the systematic combat capability to achieve the goals faster and better.
2. Talent Strategy:
Talent is the primary productive force of scientific and technological innovation. This year, we will vigorously strengthen the construction of the talent echelon. The "Thousand Generals Plan" is aimed at reserving and operating cadres for core and key positions; the "Explorer Plan" will continue to cultivate the endogenous power of the XPeng system and form a new force. Starting from this year, the proportion of explorers will increase year by year.
At the same time, we plan to 扩招 more than 6,000 employees globally and sincerely invite outstanding former classmates who left XPeng for various reasons to rejoin us to fight together to welcome the new era of AI vehicles.
3. Self-Rebirth:
To compete with top opponents, we must constantly think deeply and compare our own gaps, continuously improve ourselves, and make the details of product cost, quality, and technology better to stabilize the lower limit and continuously improve the upper limit. Although this requirement is very high, by insisting on learning, continuously benchmarking the advantages of industry leaders, desperately asking for advice from experts, and then frantically practicing PDCA, we can achieve self-rebirth and continue to create the next miracle.
Dear classmates, the brand new 2025 - 2027 is right in front of us. Move steadily and far, and head to the blue ocean! I always believe that only by being focused, persistent, and dedicated, and believing in the "power of belief", can we possibly achieve greater success.
In 2025, I hope everyone can love more attentively, live more happily, and create more heartily. Let's go to the next exciting moment together!
Finally, I expect everyone to quickly enter the working state in the New Year. Let's charge up together in the new year!
He Xiaopeng
February 5, 2025
The Year of the Snake, the Eighth Day of the First Lunar Month