XPeng’s humanoid robotic IRON is on show in the course of the 2026 Guangdong-Hong Kong-Macao Higher Bay Space Worldwide Auto Present on Might 31, 2026 in Shenzhen, Guangdong province of China.
Vcg | Visible China Group | Getty Photographs
Chinese language corporations rushed into electrical automobiles a decade in the past, and now they’re increasing into humanoid robots because the EV market sees a slowdown amid intense competitors.
Whereas the industrial viability of humanoids has come underneath scrutiny, it hasn’t dissuaded corporations equivalent to Xpeng from asserting robotic manufacturing plans, at a time when China’s EV gross sales are headed for his or her worst 12 months since 2021.
It is a part of a bid to reshape “capital valuation narratives,” stated Kevin Li, affiliate director at Counterpoint Analysis. He added that the automakers are additionally trying to increase the notion that they’re tech corporations, and set up a second development curve.
Xpeng shares have tumbled greater than 45% this 12 months, making them the worst performer amongst main EV gamers. Shares of EV big BYD are down greater than 13% as gross sales have slumped.
Chinese language automakers accounted for greater than half of the practically 20 automotive corporations globally which have entered the humanoid robotics sector by in-house growth, funding or incubation as of August, based on Counterpoint.
The enterprise arm of EV firm Nio has additionally invested in a number of humanoid robotics startups equivalent to LimX Dynamics and Acorn Robotic, based on PitchBook information.
The enterprise diversification comes as slowing development and weakening profitability put strain on China’s EV makers. The common revenue margin in China’s automobile manufacturing sector stood at 1.5% within the first half of 2026, based on China Affiliation of Car Producers information cited by Counterpoint.
Xiaomi, Li Auto and Geely are additionally amongst EV makers making strikes into the robotics sector, though their methods differ.
“Given the slowing development and weakening profitability within the EV market—notably domestically—it’s a pure strategic transfer for EV corporations to diversify into new purposes equivalent to robotics,” stated Jing Yang, director of Asia-Pacific company rankings at Fitch Rankings.
“This enables them to pursue various development drivers, obtain economies of scale for shared superior applied sciences, and doubtlessly enhance profitability over the medium time period,” she stated.
Buyers aren’t shopping for the story but.
Xpeng shares fell after it raised $900 million for its robotics enterprise final month, the biggest single spherical in China’s “embodied” AI business, based on the corporate. Embodied AI refers to hardware-connected synthetic intelligence.
The elevate valued the automotive firm’s robotics unit at greater than $6.3 billion — on par with the $6.5 billion estimated worth for Xpeng’s EV enterprise, based on Citi.
Benefits over Tesla?
Whereas there are similarities to how electric-car maker Tesla is growing its Optimus humanoid within the U.S., Elon Musk’s firm, the Chinese language automakers’ push into robotics have their very own benefits, stated Xiaoyi Lei, senior analysis analyst at Jefferies Hong Kong.
She identified that Chinese language automakers can reuse a good portion of their provide chain — Xpeng, for instance, can use 85% of its motors, chips and good driving software program for humanoids. The robots can then be instantly deployed within the automakers’ shops and factories, moderately than having to attend for customers to purchase them, she added.
Xpeng stated Tuesday it plans to start mass manufacturing of its robots by the tip of this 12 months, beginning in its personal shops and enterprise venues. Subsequent 12 months, the corporate plans to launch the robots to the broader market in China and abroad.
Automakers additionally know tips on how to construct issues at scale, Lei stated. Producing hundreds of robots which can be dependable and serviceable is what Chinese language automakers already do every single day, she added.
“Chinese language gamers are those really pushing it into each day use,” Lei stated, noting that in-house deployment makes it simpler and cheaper for the automakers to gather information — which is crucial for humanoid commercialization.
Xiaomi, a client electronics firm that solely launched its first electrical automotive in 2024, began testing humanoid robots at its manufacturing unit this 12 months.
BYD may also deploy robots in its factories, Counterpoint’s Li identified. However he stated over the medium-to-long time period, Geely and Xpeng might higher seize the advantages of diversifying past automobiles, pointing to Xpeng’s larger emphasis on its bodily AI technique.
Humanoid questions
Whether or not humanoid robots can generate demand past automakers’ personal operations stays an open-ended query. Lei stated Jefferies has but to see agency exterior orders from the automakers it covers or clear steering on exterior clients and robotics income for subsequent 12 months.
Main humanoid firm Unitree noticed its shares skyrocket as they debuted in Shanghai final month, however the inventory declined for 12 of the 16 classes since its itemizing. Founder Wang Xingxing has cautioned that commercialization might nonetheless take years, with the humanoid sector’s ‘ChatGPT’ second seemingly a decade away.
Reusing automotive know-how for robots could not at all times be as simple because it sounds.
“I might say the actual problem is how they’re going to make the algorithm and software program stack that’s was once utilized to the good driving system additionally viable to the humanoid state of affairs, which is harder and tougher,” Lei stated.
