Xpeng CEO predicts consolidation in the Chinese electric vehicle market, with AI as a key factor for SINGAPORE – He Xiaopeng, the chairman and CEO of Xpeng, a leading Chinese electric vehicle (EV) manufacturer, believes that most Chinese carmakers will not survive in the next decade, citing intense competition and the need for technological advancements, particularly in artificial intelligence (AI), for long-term survival.
In an interview during his visit to Singapore in October, He highlighted the challenges faced by the EV industry, noting that from an initial 300 start-ups, only 50 remain, and only 40 of these actively sell cars. He predicts that within the next 10 years, only seven major Chinese car companies will remain in business.
“AI is a core competency that large-scale car companies need to survive. They also have to learn from global brands in terms of product quality and service,” He said.
Despite the stiff competition, Chinese EV brands have seen growth in Singapore. Chinese companies accounted for 52.1% of all EV registrations in Singapore for the first 10 months of 2024, a notable increase from 30.3% in 2023. Xpeng, which launched in Singapore in July, has registered 212 units, surpassing several other new Chinese EV brands in the market.
He Xiaopeng is confident in Xpeng’s future, despite the company’s ongoing losses, as it continues to invest in research, development, and branding. The company aims to balance profitability with long-term success, with the goal that, once the industry stabilizes, profits will follow.
Xpeng is also advancing in the realm of autonomous driving. Their AI-powered system, which debuted in 2022, aims to handle most urban driving conditions with minimal intervention from drivers. By 2025, the company expects that their cars will require human intervention only once or twice per 100 kilometers.
In addition to EVs, Xpeng is planning to enter the extended-range vehicle market in 2026, with a model offering both an internal combustion engine and an electric motor. The company is also working on flying cars, with deliveries expected to start in 2026.
Despite some struggles among other Chinese EV producers, such as Neta, which recently halted production, He remains optimistic about Xpeng’s future, attributing the company’s resilience to its commitment to innovation and quality.survival.
