XPeng adjusts its organizational structure to reverse the downward trend in vehicle sales
Chinese electric vehicle manufacturer XPeng is adapting its organizational structure. According to a report from Jiemian News on October 21, the restructuring started about a week ago and is still ongoing. It is expected that new appointments will be announced next week.
The biggest change in this series of adjustments is that XPeng began to set up different business units in order to move from the old overly centralized organizational structure to a more operationally efficient structure. According to informed sources, the business departments involved in this adjustment cycle include the User Development and Service Center (UDS), Product Planning and Marketing.
Liao Qinghong, who is currently Director of Human Resources and Vice President of Sales and Service at XPeng, is responsible for the UDS. The creation of business units aims to improve overall efficiency, reduce communication costs and be close to users, said a person familiar with the matter.
The department originally responsible for corporate image will be upgraded to a first-level department and will no longer be under the responsibility of Li Pengcheng, vice president of XPengof the Market Division. Xiang Ying, Purchasing Manager and Senior Director of Marketing and Trade of XPengwill only be responsible for purchases in the future.
Over the past year, XPeng’s organizational structure and personnel changes were frequent. Liu Yilin, Deputy General Manager of XPeng‘s Internet Center, transferred to the automated driving center. Chen Yonghai, former vice president of AutoNavi’s mapping business, joined XPeng early 2022. In Shanghai, XPeng laid off a research and development team that originally belonged to the Internet Center.
According to another person familiar with the matter, the trigger for this adjustment was the listing of XPengis the new G9. Consumers complained about naming complexity, the gap between product planning and user needs, and marketing failure. The G9 is the first model owned by XPeng with an average price of over 300,000 yuan ($41,395), which was highly anticipated when it was first announced.
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Prior to the release of the G9, XPeng had experienced the issue of product iteration. The sales volume of its third model, XPeng P5, was less than expected, and the main sales volume came from XPeng P7 which has been on the market for almost three years with few updates.
According to official data, in August and September 2022, XPeng delivered 9,578 vehicles and 8,468 vehicles respectively. 5,745 and 4,634 P7s were delivered during the same period. XPengAugust’s shipment volume was down month-on-month, while September’s was down year-on-year and month-on-month, which was lower than in competitors such as Leapmotor, NETA and NIO for two consecutive months.