Investing.com -- Xpeng (NYSE:XPEV) has reportedly announced that it plans to hire 4,000 workers this year and pour millions of dollar worth of research into developing its artificial intelligence capabilities, as the Chinese electric vehicle maker looks to secure its position in a "bloody sea" of competition.
In a letter sent to employees on Sunday quoted by Reuters, Chief Executive He Xiaopeng vowed to "buck" a recent pullback in investment seen in the company's rivals. Cooling auto demand in China, the world's largest auto market, has led many of Volswagen-backed Xpeng's peers to slash costs and lower headcount.
But, according to Reuters, He is aiming to bring Xpeng into a "high-speed positive cycle" in the fourth quarter of this year or earlier. With this goal in mind, Xpeng is planning to expand its workforce by 25% based on 2022 figures and spend 3.5 billion yuan -- roughly $486 million -- on new investments in artificial intelligence research and the development of intelligent driving.
He hailed an "opportunity for our development," adding that 2024 will be the first year of a "knockout round" in an ongoing fierce competition between China carmakers, Reuters reported.
The announcement comes at a time when China's government has said it will support local companies doing business overseas despite facing a raft of trade restrictions. Officials in both the U.S. and European Union have also expressed concerns that Beijing could dump electric vehicles on to foreign markets in a bid to relieve local excess capacity, according to the Financial Times.