Xpeng has reportedly finished a product line consolidation, shrinking its earlier four lines, F, D, I and G, into just two, G and D. The move lands as China’s carmakers race to focus resources and cut cost in a market where growth no longer lifts every player.
Under the old structure, the F line covered the P series sedans, D carried the MONA range, I handled overseas products and G held the large SUVs such as the GX and G9L. After the change, Xpeng is said to keep only G and D. The former I and F lines fold into G. D continues to carry MONA, while G takes over the definition and development of everything else: the large SUVs, the P series sedans and the overseas models.
The reshuffle came with personnel shifts. The former F line head is said to keep the same rank and move to product definition for the G line. The former I line head is said to move to Xpeng’s overseas affairs, though overseas model sales sit outside that remit. Xpeng had not replied to a request for comment at publication time.
The logic is concentration. Collapsing four lines into two lets R and D spending land on fewer core products, which should help margins. It also removes internal competition: with G owning the large SUVs, P series and overseas definitions and D focused on MONA, products no longer fight each other on positioning and price.
Keeping MONA as a standalone line protects the volume base. By the end of August, MONA had delivered more than 310,000 units, widening its reach among smart EV buyers, and the MONA M03 held the number one spot among pure electric sedans priced between 100,000 and 200,000 yuan for 23 straight months. D keeps an independent structure so the high volume line is not disrupted by the consolidation.
Xpeng is not alone. Facing saturated demand, costly intelligent driving R and D and the industry wide problem of rising revenue without rising profit, Great Wall, Geely and Changan are all pulling back. Changan set up an AD coordination unit to share resources between Avatr and Deepal, and over five years will cut its 63 model lines to 36, aiming for one model at 500,000 units a year and five at 300,000. Great Wall uses the GWM banner to merge Haval, Ora and Cannon under one mainstream product line. Geely chairman Li Shufu said at the Chongqing auto forum that the group will orderly shut redundant entities and concentrate on its core listed platform.
Xpeng’s move is a proactive focus play. With the industry under pressure and competition deep into the hard part, fewer lines, a leaner organisation and concentrated resources buy both cost headroom and internal synergy. It is a long game move, not a rescue.
Editor’s note: This is an adapted translation of the original Chedongxi report. It has been trimmed and restructured for readability for an international business audience. The full original (in Chinese) is at https://chedongxi.com/p/377220.html.