Xpeng Streamlines Product Lines to Rein In R&D Spending

Xpeng has reorganized its internal product structure, merging its I and F lines into the existing G line, according to industry reports. The move trims the number of product lines from four down to two, leaving just the G and D divisions. This is an internal adjustment to how vehicle programs are managed and funded, not a reduction of the actual model roster. The Mona series stays with the D line, while the rest of the portfolio now sits under G. Management duties have shifted accordingly, with the former F line head now handling product definition for G, and the former I line head moving into an overseas role that excludes vehicle sales abroad.

The consolidation arrives against a challenging delivery backdrop. Xpeng moved 243,111 vehicles in the first eight months of 2026, a 10.49% drop versus the same period last year. August deliveries reached 39,107 units, up 3.71% year-on-year, marking a third straight month of annual gains, though those improvements have not yet erased the earlier shortfall. Financial pressure from rising R&D costs has been a persistent theme: second-quarter R&D expenses climbed 32.1% year-on-year to 2.91 billion yuan, driven by new model work and AI-related development. The quarterly net loss widened to 1.34 billion yuan from 480 million yuan a year prior, even as it narrowed from the first quarter.

Vehicle margin came in at 12.1% in the second quarter, flat sequentially but below the 14.3% reported a year earlier, which the company tied to model transitions. Services and other revenue streams helped lift overall gross margin to 20.7% from 17.3%. By folding overlapping programs into fewer teams, Xpeng aims to concentrate engineering resources, cut costs and reduce internal rivalry between models that compete for similar buyers.

At the same time, the automaker is pressing ahead with fresh product launches. The five-seat G9L flagship SUV debuted on September 17, joining the six-seat GX, while the Mona L03 began deliveries in July. Leadership has indicated the Mona L05 SUV is slated for China in the fourth quarter, with a stated goal of surpassing 60,000 monthly deliveries in Q4.