XPENG reportedly consolidates four product lines into two

XPENG is reportedly consolidating its product line organization from four divisions down to two, according to industry sources. The move comes as Chinese automakers face intensifying price competition and rising costs for intelligent-driving development.

Previously, XPENG maintained four separate product lines: the F line covering P-series sedans, the D line responsible for the MONA brand, the I line handling overseas products, and the G line focusing on larger SUVs including the XPENG GX and G9L. Under the reported restructuring, the F and I lines would be absorbed into the G and D lines, leaving only two divisions.

Under the new structure, the D line would continue to oversee the MONA series, while the G line would manage the remaining product range, including large SUVs, P-series sedans, and overseas models. Notably, XPENG will no longer maintain a dedicated overseas product line, signaling a shift toward integrating global offerings within its main divisions rather than treating international markets as a separate organizational unit.

Personnel changes accompany the restructuring. Reports indicate the former head of the F line will retain his rank but transition to product definition duties under the G line, while the former I line head will move to oversee XPENG's overseas affairs, though overseas vehicle sales reportedly fall outside his scope.

XPENG declined to confirm the adjustments at press time.

The consolidation appears designed to concentrate R&D resources and eliminate internal overlap. XPENG's MONA series has become a critical volume driver, with cumulative deliveries exceeding 310,000 units through August 2026. The MONA M03 has topped sales in the 100,000-to-200,000 RMB pure-electric sedan segment for 23 consecutive months, making it strategically important to preserve the D line's independent development pace.

Industry-wide consolidation trend

XPENG's restructuring mirrors a broader pattern across China's auto industry. Changan Automobile has established an AD collaborative development department to pool resources between Avatr and Deepal, and plans to trim its product lineup from 63 models to 36 over the next five years, focusing on one flagship selling 500,000 units annually and five others targeting 300,000 each. Great Wall Motor is consolidating its Haval, ORA, and Tank brands under a unified GWM umbrella. Geely chairman Li Shufu has announced the orderly closure of redundant entities within Geely Automobile Holdings to strengthen the core listed platform.

With many Chinese automakers reporting revenue growth without corresponding profit improvements, XPENG's move toward organizational simplification and product focus is viewed as a strategic bet to improve efficiency and long-term competitiveness in an increasingly crowded market.