Xpent Proposes to Invest In AI To Withstand in Global Auto Market By CIOTechOutlook Team

Xpent Proposes to Invest In AI To Withstand in Global Auto Market

CIOTechOutlook Team | Monday, 19 February 2024, 08:54 IST

Chinese EV manufacturer Xpeng plans to hire 4,000 this year to invest in AI and 4,000 employees to survive what it describes as a "bloody sea" of competition in the world's largest auto market.

The additional employees would represent a 25% expansion of the Volkswagen-backed EV maker's workforce from the latest headcount of 15,829 at the end of 2022. The expansion was announced in a letter from Chief Executive He Xiaopeng to employees on Sunday, the first working day after the Lunar New Year holiday, as per ET.

In addition, the business will make a $486.36 million investment in AI research and development for intelligent driving. He added that Xpeng plans to deliver around 30 new items or changed models in three years or less.

"Facing the pessimistic macroeconomic situation, many business partners are drawing back and afraid to invest. I think this is an opportunity for our development," He said, describing 2024 as the first year of the "knockout round" for Chinese auto brands. "In 2024, we will buck the trend and enter a high-speed positive cycle in the fourth quarter or earlier."

Xpeng's development plans stand out from rivals dashing to slice costs. Request keeps on floundering on the planet's biggest auto market regardless of reestablished limiting drove by Tesla. Nio, one more Chinese EV maker, said in November it would manage its labor force by 10% to further develop effectiveness in the midst of developing contest.

Confronting more fragile interest at home, automakers in China have hoped to trades as a main impetus for development. Be that as it may, China's developing clout as a vehicle exporter is causing contact abroad.

In the midst of a European investigation into Chinese subsidies, China's commerce ministry stated earlier this month that it would encourage the new energy vehicle industry to respond to restrictions on foreign trade and collaborate with overseas businesses.