On March 7th, reports from domestic sources revealed that Xiaopeng Motors has recently started to require its dealerships to stockpile inventory, with several dealers stating they must purchase half of the target sales volume set by Xiaopeng each month.
Previously, Xiaopeng Motors announced a sales target of 280,000 vehicles for 2024. If dealerships adhere to this policy, Xiaopeng Motors will secure a guaranteed sales volume of 140,000 units.
Dealers disclosed that they are now required to purchase vehicles each month amounting to half of the target sales volume set by Xiaopeng Motors.
This initiative aims to ensure that dealerships have sufficient inventory to meet market demand and drive sales growth. Xiaopeng Motors achieves rapid capital turnover through this move, while dealerships bear the risks of inventory and capital.
It's worth noting that Xiaopeng Motors had operated under a direct sales model until 2019 when it adopted the dealership franchise model.
However, unlike traditional manufacturers, dealerships are not burdened with vehicle inventory pressure; they place orders with the factory for production based on demand.
Since December of last year, Xiaopeng has required dealerships to stockpile inventory, and this adjustment in strategy has had an immediate impact on Xiaopeng Motors' sales performance, with sales reaching 20,115 units in that month.
In February of this year, Xiaopeng President Wang Fengying once again emphasized the importance of dealerships stockpiling inventory, ensuring that dealerships fully promote Xiaopeng vehicles.
In addition, corresponding to the inventory policy adjustment, Xiaopeng has also balanced its rebate and incentive policies for dealerships to encourage vigorous promotion and sales of Xiaopeng models.
The latest sales figures show that due to the impact of the Chinese New Year holiday, Xiaopeng delivered a total of 4,545 new cars in February, a decrease of 24% year-on-year and a decrease of 45% month-on-month.
However, Xiaopeng Motors stated that with the ramp-up of production capacity after the Chinese New Year and the resolution of individual supply chain bottlenecks, production capacity for Xiaopeng and X9 will significantly increase starting from March, accelerating deliveries.
