Chinese electric vehicle maker Xpeng said it wants to be recognised as a “physical AI” company rather than only an automaker, as it prepares to begin street trials of robotaxis and move toward mass production of humanoid robots, stepping up its push into artificial intelligence-driven technologies.
Speaking at an event in Guangzhou, Xpeng founder and chief executive He Xiaopeng said the convergence of automobiles and robotics was central to what the company sees as the next phase of technological development. Robots and vehicles share many of the same core components, including sensors, chips and computing systems, allowing carmakers to extend their expertise into areas such as factory automation and autonomous mobility.
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“With automakers facing intense competition, integrated AI capabilities with Xpeng’s in-house Turing AI chip will give it an advantage,” He said. “Xpeng definitely does not want to become a car company that simply sells hardware cheaply. We want to become a global technology company, a company with strong differentiation.”
Xpeng’s strategy mirrors similar moves by global peers seeking to leverage artificial intelligence beyond passenger vehicles. Tesla has outlined plans for robotaxis and humanoid robots, while chipmaker Arm Holdings told Reuters this week it had reorganised to create a dedicated physical AI unit to expand its robotics business. In China, Li Auto has also repositioned itself around AI, with founder Li Xiang previously saying the company invests more than 6 billion yuan ($859 million) a year in AI models, computing power and infrastructure.
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The shift comes as China’s auto market, the world’s largest, remains locked in a prolonged price war that has squeezed margins and intensified competition among electric vehicle makers. At the Guangzhou event, He unveiled four refreshed Xpeng models, highlighting new software-driven features such as 3D navigation, advanced hazard alerts beyond a driver’s line of sight, and upgrades to the company’s autonomous driving systems.
Xpeng said it has continued to hire engineers and increase investment in autonomous driving and humanoid robotics, with development centred on its proprietary AI technology. The company plans to begin street trials of robotaxis in the near term and expects to start mass production of humanoid robots in the second half of 2026, according to He.
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The company reported a net loss of 380 million yuan in the third quarter. He has previously said Xpeng aims to reach break-even by the end of 2025, underscoring the importance of new growth avenues as competition in the EV market intensifies.
Source: Reuters
