SHANGHAI/BEIJING (Reuters) – Chinese language electrical car maker Xpeng mentioned it will rent 4,000 this yr and make investments tens of millions in synthetic intelligence, because it seeks to outlive what it describes as a “bloody sea” of competitors on the planet’s largest auto market.
The extra staff would characterize a 25% growth of the Volkswagen-backed EV maker’s workforce from the newest headcount of 15,829 on the finish of 2022.
The growth was introduced in a letter from Chief Government He Xiaopeng to staff on Sunday, the primary working day after the Lunar New 12 months vacation.
The corporate may also make investments 3.5 billion yuan ($486.36 million) in AI analysis and improvement for clever driving, He mentioned, including that Xpeng plans to launch round 30 new merchandise or revised fashions inside three years.
“Dealing with the pessimistic macroeconomic state of affairs, many enterprise companions are drawing again and afraid to speculate. I feel this is a chance for our improvement,” He mentioned, describing 2024 as the primary yr of the “knockout spherical” for Chinese language auto manufacturers. “In 2024, we’ll buck the pattern and enter a high-speed constructive cycle within the fourth quarter or earlier.”
Xpeng’s growth plans distinction with rivals, that are racing to slash prices. Demand continues to falter on the planet’s largest auto market regardless of renewed discounting led by Tesla.
Nio, one other Chinese language EV maker, mentioned in November it will trim its workforce by 10% to enhance effectivity amid rising competitors.
Dealing with weaker demand at dwelling, automakers in China have regarded to exports as a driving pressure for development. However China’s rising clout as a car exporter is inflicting frictions overseas.
China’s commerce ministry mentioned earlier this month that it will encourage the brand new vitality car business to answer international commerce restrictions and cooperate with abroad companies, amid a European probe into Chinese language subsidies for the sector.
Volkswagen mentioned in July that it will make investments round $700 million in Xpeng and buy a 4.99% stake within the firm.
“This yr is Xpeng’s tenth yr. Our efficiency should greater than double,” He mentioned.
($1 = 7.1963 Chinese language yuan)
(Reporting by Zhang Yan, Sarah Wu, and Brenda Goh; Modifying by Sam Holmes)