Shanghai (ZXZC)- Chinese new energy vehicle (NEV) maker XPeng is streamlining its sales operations, reducing the number of its sales regions from 24 to 12 nationwide, according to a local media outlet, citing people familiar with the plans. Simultaneously, the company is reportedly gradually phasing out underperforming direct-sales outlets, while expanding the footprint of its authorized dealers.

XPeng G6; photo credit: XPeng

After being reached for a comment by another media channel, a responsible person from XPeng clarified, "Under the authorized dealer model, dealers independently manage their outlets according to XPeng's standardized store requirements, distinguishing themselves from traditional dealers by not bearing inventory and financial burdens."

According to earlier reports, XPeng convened a distributor conference at the beginning of September, unveiling a channel transformation plan titled "Project Jupiter." Spearheaded by XPeng' President, Wang Fengying, the plan will gradually replace the former direct-sales model with a dealership model. This strategic shift aims to reduce operational costs and expand market coverage.

During the second-quarter financial results conference call earlier this year, XPeng's Chairman, He Xiaopeng emphasized the need to rigorously optimize the company’s sales network and swiftly introduce outstanding dealer partners to accelerate market share expansion in second and third-tier cities of China.