(Yicai) March 11 -- Xpeng Motors has been asking auto dealerships to stock vehicles in advance to smooth deliveries and enhance efficiency, the Chinese electric car startup confirmed today.

Market sources said that Xpeng is requiring dealers to reserve half of its targeted sales volume every month. The Guangzhou-based firm previously announced a goal to sell 280,000 units this year. If all dealers follow the requirement, the carmaker will ship 140,000 cars at least.

Xpeng said Chinese auto dealerships generally stock vehicles for two months of sales, so asking them to reserve products for half of their sales targets is not stockpiling but part of the firm’s innovative strategy to integrate direct sales with distribution.

Xpeng kicked off this new sales approach in December and hit its sales target for that month, Yicai learned. Last month, Xpeng President Wang Fengying once again emphasized inventory reservation to ensure that dealers are fully committed to promoting its vehicles. Xpeng has also adjusted rebates and incentives for dealers accordingly.

The requirement puts pressure on dealers, sources at some firms said, as they often have to take out loans to buy Xpeng vehicles. This means that if dealers have to buy more cars, they will have to pay more in interest, so there will be pressure to achieve inventory turnover as fast as possible, they noted.

Editor: Tom Litting