Xpeng Plans to hire 4,000 and invest in AI to survive China's EV Race

According to Reuters, Chinese electric car manufacturer Xpeng (9868. HK), opens a new tab, said it will employ 4,000 people this year and spend millions on artificial intelligence to withstand what it calls a "bloody sea" of competition in the world's largest auto industry.

The new personnel would represent a 25% increase in the Volkswagen-backed EV maker's workforce from its current headcount of 15,829 at the end of 2022.  Chief Executive He Xiaopeng announced the expansion in a letter to staff on Sunday, the first working day following the Lunar New Year break.

He also stated that the firm would invest 3.5 billion yuan (US$486.36 million) in AI research and development for intelligent driving and that Xpeng intends to introduce around 30 new products or upgraded models over the next three years.

"Faced with the negative macroeconomic scenario, many corporate partners are hesitant to invest. I believe this is a chance for our development," he added, identifying 2024 as the first year of the "knockout round" for Chinese automakers. "In 2024, we will buck the trend and enter a high-speed positive cycle in the fourth quarter or earlier."

China's commerce ministry said earlier this month that it will push the new energy vehicle industry to adapt to international trade barriers and collaborate with foreign enterprises, amid a European investigation into Chinese subsidies to the sector.

Volkswagen said in July that it will invest around US$700 million in Xpeng, acquiring a 4.99% share in the firm.

"This is Xpeng's tenth year. "Our performance must more than double," he stated.