Just now, the conference call for XPeng 2022 Q4 and full-year financial report has just ended and we have prepared a memo for you to review quickly.
Q1: What is XPeng’s view on the market competition situation?
A: In recent one to two years, the extremely aggressive price war is inevitable, and gasoline cars will strike back for sure. However, the excess upstream material capacity has led to a decrease in prices, also providing opportunities for electric cars. XPeng needs to focus on scale, strengthen product and design advantages, and control costs.
In 2017, there were hundreds of automakers in China, but currently there are only over 50. Then after five years, there may only be 25 or fewer; after ten years, maybe only ten or fewer. Without sufficient hardware scale and software and hardware scale, XPeng will not be able to survive. Therefore, XPeng must innovate technology and control the cost.
Q2: What changes will XPeng make to its channels this year?
A: Wang Fengying has expertise in channels. This year, XPeng’s strategy is to strongly promote both self-run and authorized channels, and the proportion of authorized channels will increase. At the same time, the channels will move towards flattening to improve overall channel profitability and operational efficiency. In addition, XPeng also plans to turn pure sales channels into 4S channels. In short, XPeng will insist on one point: to make high-quality channels.
For the channels of third- and fourth-tier cities, they will mainly be expanded through partners, and these channels will also be considered in product planning.
Q3: What are Wang Fengying’s criticisms of XPeng after joining the company?
A: Wang Fengying’s two criticisms of the company are: planning and marketing, both of which have not been done well. In addition, Wang Fengying works seven days a week, which puts a lot of pressure on the team.
Q4: How does XPeng view the impact of GPT on itself?
A: GPT will have an impact on XPeng in the short, medium and long term. In the long term, after the deployment of GPT on the local and cloud ends, it will help intelligent cars move towards the direction of L5 from L4, but this process will be distant.
Q5: What specific measures will the company take to achieve a 25% cost reduction?
A: The cost reduction of 25% is not because XPeng is particularly capable, but because XPeng has not done well in the past on cost. Next, integrated stamping will be achieved in G6, and there is also significant room for cost reduction in the design of the battery platform. It is expected that the results of cost control will be seen in the second half of this year and the first half of next year.### Q6: How will XPeng G9 increase its sales?
A: In the price range above 300,000 yuan, the overall market will face challenges. Currently, some of G9’s configurations are increasing production capacity, and G9’s reputation is also getting better, all of which are positive for its sales growth. We have also seen that G9’s sales in March have improved compared to February.
Q7: What is XPeng’s marketing cost?
A: XPeng’s marketing costs will decrease this year; we have set aggressive goals internally while ensuring marketing effectiveness.
Q8: Does XPeng have any new developments in the battery sector?
A: Last January, battery prices rose sharply; but this year, battery prices are accelerating the decline. Currently, the price war initiated by top battery companies is good news for electric vehicles. We see that battery prices will continue to decline. We are internally adjusting various aspects such as batteries and motors, and we believe there is a great potential for price reductions, and we may see the effect in the next 12 months.
Q9: In what aspects will G6 be more appealing to consumers than P7?
A: G6 will be showcased at the Shanghai Auto Show in mid-April. First, its range will be greatly improved; secondly, G6 will have much greater interior space compared to products of the same level, especially in the rear seats.
Q10: Will XPeng use large cylindrical batteries in the future?
A: G9 has already adopted 800V fast charging and silicon carbide, which makes it charge faster even on the old charging piles. We are also researching modular battery cells, of course, there is also a possibility of using large cylindrical batteries.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.