- XPeng is shifting from pure EV manufacturing to selling its E/E architecture, smart cockpit, Turing AI chips and ADAS globally, driven by pressure to diversify revenue and leverage tech exports.
- Mass production began for the Volkswagen-co-developed ID.UNYX 08 in March 2026; Q2 2026 tech services revenue reached RMB 2.70B ($403.1M) with a 75.1% gross margin.
- Targets OEMs and non-auto firms with Robotaxi and humanoid robot plans, but execution risks include scaling partnerships, regulatory approvals, timeline to mass production, and supply chain constraints.
XPeng plans to expand its technology export business beyond its partnership with Volkswagen, offering its technology capabilities to more overseas automakers as it seeks new revenue streams, Reuters reported.
Two people familiar with the matter said XPeng is currently in talks with several potential partners, with some companies already showing interest in the company’s technology.
The Chinese EV maker plans to provide overseas automakers, software developers, and automotive suppliers with technology solutions covering its electronic and electrical architecture, smart cockpit systems, in-house-developed Turing AI chips, and advanced driver-assistance software.
XPeng’s second-generation VLA system has completed extensive road testing in Germany, allowing it to adapt to Europe’s complex traffic environments. The system can recognize local road signs, right-of-way rules, and driving behaviors.
The company also plans to expand its technology licensing and customized solutions business into other physical AI applications, including Robotaxi and humanoid robots.
XPeng Chairman and CEO He Xiaopeng addressed the issue during a media briefing at the launch event for the G9L on Sept. 17.
He said XPeng is in discussions with other automakers and non-automotive companies beyond Volkswagen, with potential cooperation covering vehicle technologies and chips. The company may announce some new partnerships at the Paris Motor Show on Oct. 12.
XPeng is now seeking to commercialize its technology capabilities beyond its own vehicle lineup, with the Volkswagen partnership serving as a key validation case.
The two companies began working together in July 2023, when Volkswagen Group invested about $700M in XPeng. The partnership covers EV platforms, software, and electronic and electrical architectures.
Their first jointly developed model, the ID.UNYX 08 electric SUV, integrates XPeng’s smart cockpit system, intelligent driving technologies, and Turing AI chip. The model entered mass production in March 2026, just 24 months after the partnership began.
The collaboration has also become a key contributor to XPeng’s technology services revenue. According to XPeng’s first-half 2026 financial results, services and other businesses generated RMB 2.70B ($403.1M) in revenue in Q2 2026, up 93.9% YoY. The segment posted a gross margin of 75.1%, significantly higher than XPeng’s vehicle business.
XPeng is moving beyond traditional vehicle manufacturing and building a broader “physical AI” ecosystem covering Robotaxi, humanoid robots, and flying cars.
Among these initiatives, the IRON humanoid robot has entered the pre-production preparation stage. XPeng plans to begin mass production by the end of 2026, with initial deployments at XPeng stores and industrial parks before expanding deliveries to China and overseas markets from 2027.
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