Chinese automaker XPeng announced the start of its recruitment effort for new dealers under its “Jupiter Project” after its media debut in September. According to CnEVPost, the automaker disclosed in its Weibo account that it already has 1,200 applications for its EV sales system.
XPeng solidifies its sales system
Unfortunately, XPeng omitted to indicate the exact date of the program launch. However, a local publication apparently claimed on September 2 that the automaker introduced the project at a dealer conference on September 2 as it seeks to attract established dealers to join its sales system.
The Chinese publication further stated that dealers’ applications for Project Jupiter have already reached 230 cities, with top-ranking dealers accounting for 34% of the total.
It is also worth noting that XPeng has already approved 107 franchise stores in the past two months.
XPeng’s strategy
XPeng plans to employ directly-managed stores and authorized dealerships for its “1+N” sales channel strategy.
However, aspirant dealership stores must operate in mainstream automotive shopping districts with more than 1,000 sqm of area. Some of the advertising posters revealed they must also have showrooms with 300+ sqm coverage.
In addition, XPeng will prioritize dealers with RMB 10 million+ registered capital, RMB 100 million+ revenue from their auto business, and a sub-70% gearing ratio.
In hindsight, XPeng initially had a direct sales model with its 20 stores. However, it decided to include dealers and service providers in April 2019 amid the Shanghai Auto Show.
XPeng’s EV sales network already had 411 stores as of the end of June, according to its quarter earnings report on August 18.
Likewise, its competitor NIO is also planning to launch a dealer model for the new Apls sub-brand as it aims to boost sales.
