Xpeng is encountering difficulties with its shift to a more dealer-dependent sales model, with its sales team undergoing new staffing adjustments, according to a recent report.
Former Xpeng vice president Gu Yuanqin has assumed the role of head of sales, taking over from Wang Tong, the previous head of sales, as reported by local media outlet Jiemian, citing multiple sources. Gu, 63, previously contributed to the development of Xpeng’s lane-level navigation and positioning system at his prior company.
Wang Tong, who previously oversaw key account sales operations, took on the role of head of sales when Xpeng merged its direct and distribution systems in 2023. He has since transitioned to leading the president’s office operations, according to Jiemian’s report.
Xpeng had been attempting to boost sales in recent months through adjustments to its sales channels, including requiring dealers to purchase a certain number of vehicles monthly. However, this strategy is reportedly facing challenges.
Xpeng initially employed a direct sales model, managing its first 20 stores directly. It later allowed dealers and service providers to join in April 2019, resulting in a sales system comprising both direct and dealer stores. In September 2023, Xpeng launched the Jupiter Project, aiming to attract large group dealers into its sales system.
Despite these efforts, the wholesale model has encountered difficulties in implementation, with inventory management posing challenges. Unlike traditional combustion-engine vehicles, new energy vehicles (NEVs) have a shorter hot selling period of around six months. The rapid pace of new model launches by carmakers has led to dealers’ vehicle inventories quickly falling out of sync with market demand.
Internal concerns at Xpeng include the possibility of dealers with excess inventory lowering prices under volume pressure, disrupting the pricing system. Additionally, Xpeng is set to fill its vacant head of marketing position after four months, with reports indicating that Yu Tao, currently heading marketing for Oppo’s OnePlus brand, may join as vice president of marketing.
Xpeng’s sales target for the year is 280,000 units, necessitating an average of over 30,000 units per month for the remainder of the year. However, the company has yet to surpass 10,000 units per month this year, making this target challenging to achieve, the report noted.
