XPeng Adjusts Product Strategy: Slows Iteration, Focuses on OTA Upgrades and Global Expansion

During the 2026 Beijing Auto Show, He Xiaopeng, Chairman and CEO of XPeng Inc., stated that the company is slowing down the pace of product iteration in both the Chinese and global markets, placing greater emphasis on software and digital over-the-air (OTA) upgrades to enhance product capabilities. He noted that this strategic adjustment is a key step toward building a healthier business model, aimed at ensuring sustained R&D investment and improving product quality and user experience. He Xiaopeng mentioned that XPeng began planning this strategic shift as early as the end of 2023 and achieved its first quarterly profit in Q4 2025. He added that the company will now focus on generating higher-quality revenue and profits, with expectations of gradual improvements in average selling prices and profitability. Additionally, XPeng is currently in discussions with overseas automakers to collaborate on bringing its advanced driver-assistance systems to the global market and expanding its international manufacturing footprint. At this year’s auto show, XPeng unveiled a new custom color option for its XPeng GX model—“Kunlun Cloudscape”—priced at RMB 10,000 as an optional upgrade.