Name: He Xiaopeng On Career and New Innovations
Uploaded: 2019-11-08
Duration: 20 min 56 s
Description: He Xiaopeng On Career and New Innovations

Those of you here from China will will know Hao Shaoping very well. He is absolutely one of China's most dynamic, successful, and I think, courageous entrepreneurs. Huge success with his venture. Sold Ali Baba, he had a fantastic Crucial position, at China's most influential Technology Group, and still decided that there were more things that he could do on his own struck out, a second time on his own as an entrepreneur, and so far it's had a great success with his. Electric vehicle car company which is named Xiaopeng after his own first name Xiaopeng. So Xiaopeng tell us a little bit about why you decided to try this new venture? Why I start a business again? So rationally speaking You know that the technology is so advanced that we may live 100 years old or even 120 years old, if I retire at 30 or 40 or 50, it's too early. And I have my first child at that time And if my child ask me what job do you do dad? And I can only tell him I'm an unsuccessful investor that's why I decided to start business again. So service, product, something else. So, So will be a great thing particularly for those who has already start of a business. So that's why I decided to start again. What prompted you to sieze on the car as, literally the vehicle for your next venture, why did you decide that that was the paricular industry you wanted to get into? [ BLANK_AUDIO ] [ FOREIGN ] I start my first business with mobile web browser with investment from Nokia. And Good China, and the globally speaking, I sensed the changes, technological changes, And I understand that a software is so important. so the automobile industry is more than one hundred years old actually the quite a few giants in this automobile industry but in the last decade or so, the few automobile giants in [ BLANK_AUDIO ] Mobility will become more efficient and become safer. So if my company can make some humble contribution, then we will feel very proud That's why we choose to enter the automobile industry and we believe it is the right moment, that so many people are so fearful that they are deterred from entering these things. Industry, that industry. It's a very crowded space. Obviously, there are lots of automobile makers and especially as we discussed yesterday. Lots of electric vehicle manufacturers. We heard from one of them, WM Motors Freeman Sean. Help us to understand where x pawn fits in this industry. Are you at the high end with Tesla Are you with the kind of lower end with the hundreds of companies that are competing what's unique about shopping [ BLANK_AUDIO ] It is important to find the right point to start our business. Tesla was launched about 15 or 16 years ago, and it has been very successful. For Chinese companies Actually, they are at their mid- range or below mid- range. So we believe that in mid- range you can achieve a larger scale. But the bigger you grow, the less gross margins that you can have. So with less gross margins, you do not have money to do research and development. So for the automobile industry we want to have marginal returns from our RND. So from my company we focus on mid range and above. And we will at the factor of smart. Smarter factor into our products. So, we will be a little bit lower than companies like Tesla but higher than other companies you the middle range. So usually we while it is means that we will compete with joint venture automobile manufacturers in China and as some other companies. So if we can survive in least market segments in the next three to five years, we believe that we will become successful. So we are already five years old. If we can continue to work for the next two or three years, if we have A complete chain and we have more products models then we have become more successful. Your first vehicle I don't know, do we have a picture of this that we can show? There we go. For those of you who don't know, it's actually a local Guangzhou company. I was over to your headquarters the other day and had a chance to sort of sit in one of these and get the feel of it. It's the G3 right, and it's a sport utility vehicle. It's surprisingly roomy inside for as compact as it is. You've sold about, what, 12, 000, 13, 000 of these? Is that right? Yes, you are right. We [ UNKNOWN ] this car model, G3, in April this year. And for the red car, it's a SUV and we deliver you largest scale in April this year. And next year we will also deliver a new car model. So we are very happy that this year for about a six to seven, so we already We we have sold about 50, 000 cars and delivered 12, 000 cars. We first sell our cars and then we produce the cars and then we deliver the cars. This means that our customers need to wait longer for our cars. I believe that as a lease business model. Yes, very important as well keep our inventory low. So, we've actually made a lot of efforts to build a lease business model but it's a, this model proves to be working. We've got cash coming in before you actually build and deliver the vehicle itself. UE so this next model is the P7 is that correct? And it's a it's a sedan. And the G3 is priced at around 200 something thousand, which is about what 30, 000 US dollars around in there. Where will the price point be for the P7? [ SOUND ] 4G three, I wish to share with you some interesting figures so it's around 200, 000 of it before government subsidies, And actually, on most of the cars that we sold, actually we use the best equipment and the facilities, installations within the car. So we are happy that we have established ourselves as 200, 000 yen The mid range, the next auto show in Guangzhou, we will have our new car model. So PGP seven will be more expensive than G3, as well be the third generational car with assistance of autonomous driving So you can see the our assistance or function of driving the assistant or driving. So well only take four seconds for you to start it to the full speed. So it will give you a very good at driving experience. Thank you Right now you build these under contract, you build them with another manufacturer. But your aspiration is to have your own plant and build them yourselves, what has to happen for you to be able to do that? [ BLANK_AUDIO ] Thank you, we are working on that actually. Actually, we have a factory that is under construction. Now we are working with our partners in Guangzhou of central china. The company called Haimao, we are working together with them in manufacturing. So I believe that for Chinese companies to go global, I think I wish the love for the mobile smartphone industry, if there are OEM manufacturers to do flexible manufacturing for us, that will be very instrumental for the Chinese automobile companies to go global Of course, there will be some actually many challenges. But so far I'm happy with the progress. If you could tell us a little bit more about your vision of what a car is, because it's a very difficult thing to go from being in the software business To being in the hardware business. But as I understand your view, you don't really see yourself as being in the hardware business. You see the car as more like kind of a mobile phone that happens to have wheels, and that just like the mobile phone, the value of the car is the software. And the data it can be connected to. And how you can upgrade the quality of that software on a very regular basis, almost like you would an app. [ BLANK_AUDIO ] Actually we update our car every two months. So if you are an expert owner, actually, a few other electric cars can update, their system equity driving system at AI every two months. So I believe in the next four to 10 years, We will see the [ UNKNOWN ] coming to is at the peak of the electric car industry. So the in the next four to ten years assistant driving will help each and every driver for assistant driving I mean that's For every 100 hours driving, it will help you in 50 to 90 hours. You can do states are behind the wheels, but the assistant function can help you 50 to 90 % of the time So with mass data of assistant driving at a well bring disruption to the automobile industry, so how many sections of the road Automous driving can replace a human driver in the future, so from the software perspective or from traditional perspective, cases, suspension system and many things else will be changed, so I think the shape of car will also be changed in the future. So for a startup entrepreneur in the automobile industry, we are very excited because we are going to create a completely new car. For example, the future car will look like a egg. So that's a very futuristic view of the driving experience. And I'm just curious as to how close you think we are in China to that becoming a reality. I mean, this next model that you're selling is going to be capable of a certain level of autonomous navigation on the roads, right? But Are the are the systems necessary for that far enough advanced that that's going to be a seamless positive experience for drivers or, you know, I've spoken to a few people here who were mentioning to me that they've tried it in the United States and actually, it's still not anywhere close to where it needs to be, that the GPS and the software doesn't work together very smoothly at all, but the cars are too slow and stopping at intersections, they're cautious in approaching driveways, that it doesn't feel like a regular driving experience. Where are we in trying? Are we Close to pure autonomous vehicle navigation being a reality. [ BLANK_AUDIO ] [ INAUDIBLE ] [ BLANK_AUDIO ] There are two categories. One is autonomous assisted driving, one is driverless driving. For the first category, it will take about four to five years. Then autonomous assisted driving can recognize traffic lights. And they know how you prefer to turn your car to right or turn right. I think it will take about four to five years. For the singular category, when it will become pilotless or driverless, actually there are a lot of tests. But I think that we should work out two things. First is that he is as dangerous as the security I think just should have. Absolute are very high degree of security in order to be run on the road. And the now on the pilot testing, it's about 80 % A secure, that's not enough and a year for further experiments. They need to move further and the mass data. And, I think that's, we need about a hundreds of millions of kilometers of data to make, to make these kinds of machine learning, move forward. So we are still in the primary stage of the signal category. Every month about 80 % of parking actually used to our autonomous parking function. And for about the autonomous changing of lane, yes about 70 %. Every months, so actually they're the first steps autonomous assistant driving. So we believe that we're making progress, every day, every week, and every months. So our objective is kind of clumsy autonomous driving, or generation 3. 5. Autonomous driving. So I think that in the years to come in one or two years, we can have assistant autonomous assistant driving in most of our roads in China but so far we cannot achieve it. We need to work on. You expect that people will be able to do that with the piece of it. Is that correct? [ BLANK_AUDIO ] [ UNKNOWN ] That's the third generation car for P7. So I hope that's when P7 yes launched next year and we can help the driver. Reach a 50 % of all driving hour, 50 %. 5G help you to advance capability and autonomous navigation? [ BLANK_AUDIO ] 5G technology is very important. For autonomous assisted driving and the for future complete driverless driving. For example traffic lights. 5G technology will enable you to plan your routes earlier and also help you to have a human machine interaction So, this 5G technology will enable you to have a better and a smoother interaction and 5G makes it possible. And 5G will also make virtual driving possible, remote virtual driving possible So, I think that 5G will be applied in the automobile industry earlier than in other industries. I want to take questions if there are questions from the audience. Here is one right here, yes, if you could stand up and tell us your name? Hi, this is Lydia from Hong Kong Stock Exchange. I'm gonna ask the cashier in Chinese to know. For our Hong Kong Stock Exchange and question is that, you start here to have business choice or [ UNKNOWN ] industry. So which other technology interest you? You will start another business again with a certain kind of technology. So I was toiled with the idea about the protection of human brain freezing of a human brain but it did not work. [ UNKNOWN ] Another imagination is to establish a CD on the water body. So biggest technological advancement is in the Energy Information Exchange. Even the entities, maybe some others would be engaging in these forums. Thank you. Interesting. We have a question from the stock exchange. Speaking of that, I'd like to ask you just maybe one quick question about funding. There's been debate and rumor and speculation about whether you would seek funding. In Hong Kong, in China, go to the United States. Do you wanna enlighten us a little bit about your plans there, or where you're thinking of listing, and when that might happen? [ BLANK_AUDIO ] It's indeed a very challenging question for me. We are still doing the reflections think very hard beat in Hong Kong, beat in US. I like both of them. Maybe it's too early to tell. Next year I will be sharing with you this idea. Thank you Have to come back and update us at next year's Fortune global forum. Will you join me in thanking Hoshal Kong. [ APPLAUSE ] [ BLANK_AUDIO ]