Xpeng Motors cuts its sales area in half, eliminates inefficient direct-sale stores, and accelerates its layout in second- and third-tier markets

According to multiple sources, Xpeng Motors has decided to reduce its 24 sales regions across the country to 12, and has begun to eliminate inefficient direct-sale stores and expand the store size of agent dealers. It is reported that this is a channel transformation plan called "Jupiter Plan" launched by Xpeng Motors in order to reduce operating costs and increase market coverage.

Xpeng Motors' financial situation is not optimistic at present. According to its financial report for the first half of 2023, its revenue was 9.1 billion yuan, a year-on-year decrease of 38.9%; its gross profit margin was negative 1.4%, and its net loss was 5.14 billion yuan. At the same time, it is also facing fierce challenges from competitors such as Tesla, Weilai, and Ideal. In this context, it is inevitable for Xpeng Motors to adjust its channel strategy and enhance its competitiveness and profitability.

The "Jupiter Project" is led by Wang Fengying, a former executive of Great Wall Motors, and aims to gradually replace the previous direct sales model with a dealer model. This means that Xiaopeng Motors will close some poorly managed direct stores, gradually increase the authorization ratio, and introduce more dealers to third- and fourth-tier cities.

In addition, the "Jupiter Plan" also includes strengthening the training and management of dealers to improve their service level and brand image. At the same time, Xiaopeng Motors will also increase investment and construction of after-market service facilities such as charging piles and maintenance stations to enhance user experience and loyalty.

91che believes that the "Jupiter Project" is an important strategic adjustment for Xpeng Motors in the current market environment, and it is also a necessary change for Xpeng Motors to achieve long-term development. By optimizing the sales network, Xpeng Motors can reduce direct sales costs, improve market coverage, and increase sales and revenue. At the same time, by introducing excellent dealers, Xpeng Motors can deepen its presence in second- and third-tier cities and enhance its competitiveness and market share in the field of smart electric vehicles.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.