What?
Xpeng, the electric vehicle (EV) maker, is facing challenges as it replaces its sales chief and transitions to a more dealer-dependent model, according to a recent report by local media outlet Jiemian. Former Xpeng vice president Gu Yuanqin has taken over the head of sales position from Wang Tong as the company seeks to adjust its sales strategy. Xpeng had initially used a direct sales model but later incorporated dealers into its sales system. The company is now struggling with its wholesale model, which requires dealers to meet monthly vehicle sales targets.
Why does it matter?
The shift in leadership and sales strategy at Xpeng comes at a critical time as the company aims to boost sales and maintain its competitive edge in the EV market. The challenges faced by Xpeng highlight the complexities of managing inventory for new energy vehicles (NEVs) compared to traditional combustion-engine vehicles. Dealers are experiencing pressure to sell out existing inventory quickly, as the demand for NEVs evolves rapidly in the market. Additionally, Xpeng’s goal of selling 280,000 units this year presents a significant hurdle, given the company’s current sales performance.
How is it going to shape the future?
The recent changes at Xpeng, including the appointment of a new head of sales and potential addition to the marketing team, signify the company’s efforts to adapt to the evolving EV landscape. By addressing the challenges in its wholesale sales model and distribution system, Xpeng may be able to streamline its operations and improve sales performance in the long run. As the EV market continues to grow and innovate, Xpeng’s strategic decisions will play a crucial role in shaping its future success and market position. The company’s transition to a more dealer-dependent model and focus on innovative smart driving experiences indicate its commitment to staying ahead in the rapidly evolving EV industry.
Source: https://cnevpost.com/2024/05/24/xpeng-replaces-sales-chief-wholesale-approach-headwinds/
