Xpeng makes an attempt differentiation through AI pivot

Xpeng has adopted within the footsteps of Tesla, asserting on 8 January it desires to be generally known as a “bodily AI” firm moderately than an automaker, with plans to take a position closely in each robotaxi deployment and the event of humanoid robots. At an occasion in Guangzhou, Chief Govt He Xiaopeng stated that built-in AI capabilities powered by the corporate’s in-house Turing chip will present a aggressive benefit as compatriot OEMs face intense aggressive stress.

He acknowledged: “Xpeng positively doesn’t wish to grow to be a automobile firm that merely sells {hardware} cheaply. We wish to grow to be a worldwide know-how firm, an organization with robust differentiation.” The strategic shift comes as China’s automotive market—the world’s largest—stays embroiled in years-long value warfare that intensified in 2025 and has severely broken profitability throughout the sector. Xpeng itself recorded a CN¥380m (US$54m) internet loss through the third quarter; BYD, arguably answerable for the most recent bout of value warfare, additionally recorded a 33% drop in earnings.

An AI pivot is a part of the basic tech firm playbook; that’s, repositioning away from low-margin commoditised {hardware} in the direction of higher-margin software program and AI that might unlock recurring income streams. For Xpeng, this might be defensive positioning given its latest streak of losses, though it needs to be famous that these losses are shrinking.

The automaker has additionally unveiled up to date 2026 mannequin 12 months G6 and G9 crossovers, that includes superior driver help techniques providing both 1,500 TOPS computing energy for the Extremely SE configuration at CN¥12,000 (US$1,715) or 2,250 TOPS for the Extremely system at CN¥20,000. Each variants incorporate Xpeng-developed Turing AI chips and help the corporate’s second-generation Imaginative and prescient Language Motion mannequin integrating visible notion, language understanding and motion technology with reasoning capabilities.

Officers have claimed the ADAS is so superior it permits an expertise near SAE Stage 4 autonomy. Xpeng, like Tesla, has favoured a camera-vision-only strategy to autonomy—presumably, additionally like Tesla, to economize—and subsequently should lean closely on its AI capabilities to beat the considerably extra restricted sensor knowledge enter.

Xpeng now plans to equip its robotaxis with 4 Turing AI chips offering 3,000 TOPS computing energy, with He confirming avenue “is ready to start very quickly”. This comes on the heels of a November announcement that the automaker would accomplice with Alibaba to launch three robotaxi fashions throughout 2026. Humanoid robotic mass manufacturing is scheduled for the second half of the 12 months as Xpeng expands its workforce and will increase its funding into autonomous driving and robotics improvement.

The similarities in technique to Tesla go effectively past the camera-vision-only strategy. Each are aggressively pursuing humanoid robots; each additionally plan to mass-produce their respective choices someday in 2026. In contrast to robotaxis, nevertheless, there isn’t any clear use case for humanoid robots outdoors of warehouse automation—and even then, robots custom-built for particular duties are more likely to fare higher within the latter.

Chinese language compatriot OEM Li Auto unveiled its personal AI repositioning throughout 2023, with founder Li Xiang disclosing annual investments exceeding CN¥6bn (US$859m) in AI fashions, computing energy and supporting infrastructure.

Up to date car fashions incorporate new software program options, together with three-dimensional navigation techniques claimed to be China’s first nationally-available 3D lane-level mapping; superior hazard alerts detecting risks past rapid sight traces, and enhancements to autonomous driving techniques. He beforehand acknowledged expectations to realize break-even profitability by the top of 2025, although the corporate has not but confirmed whether or not this goal was met.