XPeng Advances Physical AI Strategy: Full-Price Product Portfolio, Mass Production of Robotaxis and Humanoid Robots

In Q1 2026, XPeng officially rebranded as "XPeng Group," clearly signaling its strategic transformation into a physical AI technology company. The company expanded its business scope to include autonomous driving, flying cars, humanoid robots, and AI chips. Simultaneously, XPeng unveiled four major applications: its second-generation VLA (Vision-Language-Action) system, Robotaxi, the next-generation IRON humanoid robot, and its flying car, declaring 2026 as the “Year One of Mass Production for Physical AI.” In Q1, XPeng Group delivered 62,682 vehicles, generating revenue of RMB 13.03 billion with a gross margin of 20.6%. R&D expenses surged 46.8% year-over-year to RMB 2.91 billion, while sales and administrative expenses decreased to RMB 1.88 billion. Service and other revenue reached RMB 2.03 billion, up 41.2% year-over-year, marking the beginning of revenue from technology licensing. As of March 31, the company held cash and cash equivalents of RMB 42.09 billion. On the product front, XPeng completed a full lineup refresh across the RMB 100,000–400,000 price range, establishing a dual-technology strategy combining “pure electric + super extended-range” powertrains. The MONA M03 (starting at RMB 119,800) has ranked as China’s best-selling A-segment pure electric sedan for 20 consecutive months. The P7+ and G6 models dominate the RMB 150,000–200,000 segment, while the G9 remains a top seller in the RMB 250,000 luxury SUV category. The X9 MPV has surpassed 55,000 global deliveries. The flagship SUV GX, launched in May in both pure electric and super extended-range variants, garnered nearly 25,000 firm orders within 12 hours—over 80% for the Ultra flagship trim and more than 50% for the super extended-range version. In intelligent driving, XPeng’s second-generation VLA system was rolled out in March and achieved over 50% of total driven miles assisted by ADAS in its first month—making it the industry’s first system to reach this milestone. Built on a mapless, rule-code-free architecture, the system enables rapid overseas deployment and supports factory-installed Robotaxi integration. Starting Q2, Volkswagen has adopted XPeng’s self-developed Turing AI chip across its entire vehicle lineup. The Robotaxi, based on the GX platform and equipped with four Turing chips delivering 3,000 TOPS of computing power, has entered mass production and is undergoing L4 public road testing in Guangzhou, with pilot operations scheduled to begin in Q3. The IRON humanoid robot is set to debut in Q3 and achieve mass production by year-end, initially trialed in XPeng stores before commencing deliveries to domestic and international customers in 2027. The flying car, codenamed “Land Aircraft Carrier,” has completed batch trial production and multi-unit test flights and is now entering the commercialization preparation phase. Internationally, by the end of Q1, XPeng had entered over 60 countries with 393 overseas outlets. In April, monthly overseas sales exceeded 6,000 units for the first time, and international revenue is expected to surpass 20% of total revenue in Q2. XPeng operates manufacturing facilities in Indonesia, Austria, and Malaysia, with the Austrian plant already producing the G6 and G9. Its Munich R&D center in Germany is now operational. The company plans to launch four global models in the second half of the year, targeting monthly overseas sales exceeding 10,000 units by Q4 and more than doubling its full-year overseas deliveries. For Q2, XPeng forecasts vehicle deliveries of 100,000–106,000 units, representing a 59.5%–69.1% sequential increase, and revenue of RMB 19.6–20.8 billion, up 50.4%–59.6% quarter-over-quarter. The company aims to complete mass production of both Robotaxi and humanoid robots within the year and build a comprehensive physical AI commercial ecosystem.