XPeng CEO He Xiaopeng：AI to Reshape Industry — Will Most Automakers Vanish in a Decade?

He Xiaopeng delivered the new XPeng X9 to local users in Hong Kong.

On the morning of April 16, Beijing time, after the first global brand launch event — XPeng Global Love Night — held at Kai Tak Pier in Hong Kong, He Xiaopeng, Chairman and CEO of XPeng, and Gu Hongdi, Vice Chairman and President of XPeng, jointly attended a joint interview with over a hundred Chinese and foreign media at Hopewell Hotel in Hong Kong.

As Jaffy, the host of the launch event and head of overseas marketing for XPeng, said, this was XPeng’s first truly global media launch event. Thus, it was evident that the focus of the past two days’ releases was to comprehensively introduce XPeng to the world, explain its development logic, and even clarify why XPeng would succeed in the future.

At the morning media briefing, most of the journalists were from overseas, including France, India, Southeast Asia, Japan, South Korea, and other regions.

The most important judgment made by He Xiaopeng today is that AI will reshape the industry, and in the next decade, most automobile companies will disappear, with no more than ten mainstream automobile companies remaining.

Regarding this key launch event in XPeng’s history, we will quickly summarize it in three chapters today.

Overseas Factory Construction

Since this is a global launch event, how XPeng will address the current tariff issues, geopolitical conflicts, and achieve globalization has naturally become the focus of the attending media, with questions ranging from France and Australia to India, Indonesia, South Korea, Malaysia, and so on.

Most of the answers were provided by XPeng’s President, Gu Hongdi. For instance, regarding India and South Korea, he stated that these are very important markets, but there is no timetable for entering these countries and regions at present. However, he also revealed that they recently launched the brand in Indonesia, and the first overseas factory will soon be established there.

When discussing global development, He Xiaopeng emphasized the need for a more stable approach, noting that this launch event had been planned for many years. XPeng will have R&D, manufacturing, and more localized services, including charging and OTA, in many regions around the world.

“I think this is more important,” and by 2026, XPeng will introduce more product lines to the global market, such as the Kunpeng Super Electric System to be released in Q4 this year.

In response to how to achieve global localization, Gu Hongdi stated that XPeng will establish local teams, including marketing and branding, and will collaborate with many local partners. “If you want to be a leader in Europe, you must have R&D, supply chains, and production locally... and ensure that you meet local demands and become a local brand.”

Therefore, they will set up their own factories in Europe, but specific details will be disclosed when appropriate.

Finding Uniqueness

He Xiaopeng (left) and Gu Hongdi (right)

Uniqueness was a key emphasis for XPeng during the launch events over the past two days and a focal point of inquiries from Chinese and foreign media at the event.

In response to questions about functional gaps in intelligent applications such as the Turing chip and autonomous driving in the Southeast Asian market, Gu Hongdi stated that China is currently at the forefront of global smart mobility development.

From XPeng’ perspective, they believe these intelligent technologies can be used by global consumers, and the application of technology should have no boundaries. “We aim to be pioneers and leaders in smart mobility and hope to be the first company to provide such technologies in various countries.”

This is the uniqueness that XPeng hopes to convey as it enters global markets, setting itself apart from other Chinese automobile brands expanding overseas. In He Xiaopeng’s words, this uniqueness is reflected in a sense of technology, high quality, and the overall image presented as a tech company. He also revealed a small detail: in global markets where Tesla sells well, XPeng Motors’ sales and acceptance are also good.

Therefore, He Xiaopeng said that when launching products globally, they will introduce flying cars with a capacity of two million, as well as the G6 and G9. Today, the new X9 was also delivered in Hong Kong, and these choices are deliberate.

He also specifically called for clearer regulations on intelligent assisted driving in regions such as Europe, Southeast Asia, or Hong Kong, so that advanced technologies can be implemented in compliance with traffic laws.

AI Reshaping

He Xiaopeng delivered the new X9 to local users in Hong Kong.

The most important chapter concerns He Xiaopeng’s key judgment about the next decade.

This judgment stems from a question: Will XPeng be able to maintain its position steadily over the next 25 years?

He Xiaopeng gave a negative answer. In his view, competition over the next three to five years, and even the next decade, will remain intense and even more brutal.

Therefore, to stand firm in the competition, XPeng must do four things well. First is investment in technology R&D to keep up with the pace of technological change; second is the efficiency of organizational structure; third is the enhancement of a series of commercialization capabilities, including how to save money and how to make money; and fourth is globalization.

Expounding on the first point, He Xiaopeng believes that in the coming years, with the development of AI technology, the usage model of all automobiles, even the purchasing model, and the scenario model constructed will undergo significant changes. And the overall transformation brought about by these changes will emerge both in China and globally.

“From 2024 to 2034, technology will develop through several generations, primarily driven by AI.”

AI will reshape the automobile industry and the entire product model. He Xiaopeng stated that he is “quite worried” because at the peak, there were over a thousand Chinese mobile phone companies, but now only six remain. Currently, there are over 100 automobile companies in China, and with various new automobile manufacturers, possibly over 300. However, “I believe the final number will be within ten.”

“Such changes will definitely occur!” He Xiaopeng said, “The key is how long the process will take, which no one knows, but it will definitely come.”