Xpengu announces thousands of new jobs and millions of investments in artificial intelligence

Chinese electric vehicle maker Xpeng has announced it will hire 4000 people this year and invest millions in artificial intelligence, Reuters reported on Monday.

This investment is expected to happen due to competition in the largest car market in the world.

The additional employees will represent a 25 percent expansion of the Volkswagen-backed electric car maker's workforce.

The expansion was announced in a letter from chief executive He Xiaopeng to employees on Sunday, the first working day after the Lunar New Year holiday.

The company will also invest $486.36 million in AI research and development for intelligent driving, adding that Xpeng plans to release about 30 new products and revised models within three years.

Xpeng's expansion plans contrast with rivals, which are racing to cut costs. Demand continues to falter in the world's largest auto market despite new discounts led by Tesla.