A new story by Chinese media, jiemian.com reports Monday that Xpeng Motors (NYSE:XPEV) has reduced its sales areas by half and will gradually replace the company’s existing direct sales model and instead move to a dealership model of distribution.
On September 11th, Jiemian News received information from several sources well-acquainted with the situation, indicating that Xpeng Motors has recently downsized its original 24 nationwide sales areas, established in March, to just 12. Furthermore, the company is gradually closing down underperforming company-owned stores while simultaneously increasing the number of dealer-operated outlets, with a focus on expanding the size of these stores.
During an early September channel dealer meeting, Xpeng Motors unveiled a strategy known as the "Jupiter Plan." Exclusive information obtained by Jiemian News from a source closely connected to Xpeng Motors indicates that this plan is spearheaded by Wang Fengying, the President of Xpeng Motors, who oversees the sales division. The central objective of the plan is to gradually transition from the previous direct operation model to a dealer-based model.
Shares of XPEV are up 6.22% near end of day trading Monday.