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Overseas expansion and artificial intelligence are emerging as two key strategies for Chinese automakers aiming to stay ahead in the industry this year, according to open letters sent to all staff by eight major Chinese car manufacturers, including Nio, Xpeng, and Geely Group, since the end of last year.
Leading automakers are targeting at least 12% growth this year, with Leapmotor Tech aiming to reach one million vehicles by 2026—a 67.5% increase compared to last year. Xpeng’s sales goal is between 550,000 and 600,000 units, representing over 28% growth, while Xiaomi Auto is targeting 550,000 cars, a 34% jump. Nio also plans to sustain steady annual growth between 40% and 50%.
In contrast, the China Association of Automobile Manufacturers offers a more conservative outlook, projecting that vehicle sales will increase by just 1% over last year, reaching approximately 34.7 million units.
While automakers set ambitious growth targets, industry analysts are more cautious, creating a notable gap that sets the tone for the Chinese auto market at the start of 2023.
Leapmotor, celebrating its 10th anniversary, announced that this year it intends to shift from merely exporting cars to actually manufacturing vehicles overseas, with plans to deepen integration with local industries. “The industry’s elimination process is becoming more intense, and competition will only grow fiercer,” said Zhao Fei, president of Changan Auto. “The window for seizing overseas opportunities is only one to two years. We must accelerate resource investment, push forward relentlessly, and strongly promote our international expansion strategy.”
Xpeng plans to double its overseas sales this year, aspiring to sell one million vehicles abroad by 2030, with international markets contributing more than 70% of the company’s profits. The focus will be on five key markets: Israel, Germany, Norway, Thailand, and France.
Geely is committed to enhancing product adaptability and local development, aiming to strengthen its competitiveness in major markets through exports, brand growth, resource sharing, and technological advancements.
Artificial intelligence has become a core performance metric for many automakers this year. For instance, Xpeng’s goal is to be the first tech company worldwide to mass produce three advanced AI applications—robots, flying cars, and Robotaxis—within the same year.
Li Xiang, CEO of Li Auto, predicts that Level 4 autonomous driving technology will be commercially available by 2028 at the latest. He further stated that only a few companies globally will have effectively integrated foundational AI models, chips, embodied intelligence, and operating systems. Li Auto also plans to develop humanoid robots and aims to introduce them as soon as possible.
Chery also launched its AI strategy in January, showcasing key AI innovations such as its super AI assistant “Xiaoqi,” the Falcon smart driving system, the Lingxi smart cockpit, and the AiMOGA robot.
German consulting firm Roland Berger forecasts that the dominance of top-tier automakers in China will become even more pronounced this year. The market landscape is expected to feature a few leading companies, several mid-tier players, and numerous smaller, struggling firms. Overall, the messages from these top manufacturers make it clear they are committed to maintaining their leadership position.
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