Author: Chai XuchenEditor: Zhang XiaolingOn the first day of 2024, XPENG made a strong start by launching its flagship model X9, which made a high-profile entry into the high-end electric luxury car market dominated by companies like NIO and Li Auto. XPENG dropped a bombshell in this niche market.Chairman He Xiaopeng announced XPENG's preliminary &#34;comeback&#34; under the Guangzhou Tower, stating that the company has entered a positive cycle with a monthly sales volume of 20,000 units. The 5.3-meter-long X9 has become XPENG's new weapon, aiming to penetrate the family market that is highly valued by NIO and create another hit product.The debut performance of the X9 did not disappoint. On the night of its launch, the pre-order volume for the X9 exceeded 30,000 units, with more than 5,000 confirmed orders. Having such a large number of confirmed orders for a 400,000-level MPV indicates the birth of a new hit product, whether in the traditional or pure electric MPV market.XPENG's strong start to the year indicates that there will be a fierce survival battle in the electric vehicle market in the future. Whoever can create a good product lineup, continuously produce hit products while considering profitability, will be able to survive in the competitive market and become a giant.<h2>Unexpected Popularity</h2>On January 1st, at XPENG's New Year Family Concert, He Xiaopeng mysteriously announced that &#34;two cars will be launched tonight&#34;: a seven-seater MPV and a &#34;four-seater SUV with a large space&#34;.In fact, these are just two different &#34;modes&#34; of the X9. It can be switched from a seven-seater mode to a four-seater mode with just one click, completely folding the third row to transform into a super SUV. Despite its large space, the X9 drives like a &#34;small car&#34; with agility, thanks to its rear-wheel steering system, without the clumsiness of a traditional MPV.Inside the car, He Xiaopeng also talked about the story of a &#34;mobile home&#34;, from the refrigerator, television, and large sofa to the central air conditioning. Of course, the X9 is equipped with skills such as the 800V high-voltage platform, nationwide coverage of XNGP intelligent driving, and the introduction of AI models in the XOS smart cabin.Surprisingly, XPENG has managed to reduce the price of the X9 to 359,800 to 419,800 yuan, which is 30,000 yuan less than the pre-sale price announced at the Guangzhou Auto Show over a month ago.By offering a seven-seater that can be switched to a four-seater and selling it at the price of an SUV, XPENG aims to penetrate the &#34;MPV+SUV&#34; market. He Xiaopeng's idea is simple: to open up a path in the pure electric MPV market for family use and become a super hit product with the highest sales volume.In a post-event interview, He Xiaopeng confidently stated that once the production capacity is increased, they will &#34;take on SUVs&#34;. Huang Honglin, XPENG's General Manager of Product Marketing, also pointed out that if the X9 moves beyond the MPV form, it will become a competitor to many three-row seat, large SUVs.Insiders close to XPENG revealed to Wall Street News that the company does not want the X9 to be labeled as an MPV and be limited to this small segment market controlled by traditional fuel vehicles and hybrids. After all, the monthly sales volume of the Buick GL8, known as the &#34;King of MPVs&#34; in the mid-to-high-end market, is only around 10,000 units, and the sales volume of the pure electric MPV leader, Jike 009, is as low as 1,000 to 2,000 units.It is worth noting that the price and positioning of the X9 have to some extent extended into the territory of the Ideal L8\L9, which is the market for family cars.Perhaps to avoid competition, Ideal announced the postponement of the release of its flagship MPV MEGA to March, one day before the listing of XPENG X9. Insiders close to Ideal revealed that the company is currently working on modifying the seat design of MEGA.The X9, which opens up two markets with one car, has had a good start, which surprised both XPENG and Ideal. He admitted that the current production capacity of the X9 is not enough. &#34;Huang Honglin predicted that the X9 could be the leader in its segment, but it cannot achieve such a large volume. It seems that I was not tough enough on him.&#34;Next, XPENG's internal departments and external channel systems will need to adjust to meet the challenges brought by the X9.In fact, XPENG has had popular models in the past, but unfortunately, they did not last long. In 2019, XPENG's first model, the G3, laid the foundation for the company with an annual sales volume of 17,000 units. In 2020, XPENG released the P7, which was considered by competitors to be the most beautiful pure electric sedan and accounted for over 60% of XPENG's sales. In 2023, the G6, which targets the Model Y, also sold well in the early stages.However, now the G3 is facing delisting; after the redesign in 2023, the P7 has not regained its former glory of &#34;9,000 units per month&#34;; and the G6, which has been on the market for half a year, seems to have encountered a &#34;bottleneck,&#34; with sales hovering around 8,000 units for three consecutive months.One reason is that the market competition is too fierce. In the sedan, SUV, and other segmented markets, multiple brands and models are emerging like mushrooms after rain, while old models are heavily discounted. For example, the P7 has encountered price reductions from the Model 3 and BYD Han, and the G6 is facing competition from models such as the Zhi Ji LS6 and the Fei Fan R7.As the popularity of the P7 and G6 gradually fades, XPENG and Ideal face the same question - can the X9 achieve long-term success, and will there be more products to follow as a &#34;hit-making machine&#34;?<h2>Stepping up &#34;catch-up&#34;</h2>In the eyes of He Xiaopeng, the significance of the X9 to XPENG is not only to enhance the brand image and occupy the 300,000-400,000 yuan price range, but also to attract customers to other models in its lineup. It is not only about aligning the technical architecture platform, but also about building a product system that can cooperate with each other and &#34;share&#34; the flow and popularity between them.XPENG stated that as a concentrated embodiment of the company's various black technologies, the marketing campaign for the X9 has already been implemented in the market. After attracting consumers to the store, even if they don't buy the X9, they can choose from models such as the G9 and G6 based on their own needs, directly driving overall sales and endorsing future models.He Xiaopeng revealed to Wall Street News that the brand codenamed &#34;MONA&#34; will launch its first A-class car product, aiming to establish a smart driving brand in the 150,000 yuan price range, with both technological competitiveness and a certain gross margin. The initial target is to sell 100,000 units annually.XPENG's main brand will also launch new cars this year, and he also wants to challenge the scale of 100,000 to 200,000 units with a million-priced flying car.However, to truly go from relying on a hit product to becoming a giant with consistently popular and evergreen models, and solid sales growth, what is needed is a complete and systematic capability.XPENG also mentioned this time that for a company to ultimately do well, it needs to build up the entire organizational capability.&#34;I believe that organizational capability is of utmost importance for a company to be in the top three in China or the top ten in the world. Now, we not only need to benchmark the traditional automotive industry, but also the organizational strength of the mobile phone industry.&#34;In his view, the next three years from 2024 to 2026 will still be accompanied by internal competition and reshuffling. &#34;Some companies will decline, while others will rise. No one dares to say they are stable, but only that the probability of sinking varies.&#34; This requires XPENG to &#34;strengthen its strengths and make up for its weaknesses&#34; in all aspects.Some insiders close to the ideal also told Zhitong App that in the early stages, creating a hit product may rely on the founder's perception, but to continuously replicate hit products, a strong and complete system is needed.XPENG pointed out that the first thing XPENG needs to strengthen is its marketing capability. With the addition of Wang Fengying, she will help establish the professionalism, depth, and future planning capability of the automotive industry. &#34;My core requirement for Fengying is to make our products and marketing outstanding by the end of this year and position XPENG where I expect it to be.&#34;In terms of channels, XPENG is also pushing forward with reforms. Huang Honglin told Zhitong App that XPENG focuses on changes in channel forms. &#34;As XPENG's models increase and user retention increases, we will gradually optimize and replace some channels, but comprehensive stores will still be the main focus.&#34;As for products, XPENG believes more in the disruptive power of AI in the smart car market, which also helps XPENG achieve its established sales targets in its preferred price range.From a global perspective, XPENG believes that the initial construction of a systematic capability will take 18-24 months. XPENG, which has already adjusted from the end of 2022 to the present, will enter a rapid positive cycle in the fourth quarter of this year.It seems that XPENG has already sorted out his ideas and seems to have found the &#34;root cause&#34; of the problem. Only by &#34;making up for the deficiencies&#34; can a systematic capability be achieved and bring stability and happiness to XPENG, allowing him to sleep well this year. The biggest challenge remaining may be execution.&#34;The most important thing in the next three years is that execution is more important than strategy, and execution is difficult every year. But some friendly competitors have achieved it, and I think we can do it too, but we need to have confidence and do more and say less.&#34; XPENG said.Whether XPENG can successfully pave the way to becoming a giant, perhaps this year will provide the answer.

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"Supplementary classes" need to be systematized in order to thrive.

XPENG 又推出了一款热销车型。