Several Chinese electric vehicle manufacturers — including Xpeng, Xiaomi, Li Auto, Geely and Nio — have entered the humanoid robotics space this year through in-house development, investments or incubation. According to Counterpoint Research, these firms account for more than half of the nearly twenty companies worldwide that moved into humanoid robotics by August.
The move comes as electric vehicle sales slow and sector profitability weakens. Data from the China Association of Automobile Manufacturers show the average profit margin in China’s vehicle manufacturing sector was just 1.5 percent in the first half of 2026, while EV sales this year are the weakest since 2021. Market sentiment has also suffered: Xpeng’s shares have fallen by more than 45 percent this year and BYD’s shares have declined by 13 percent.
Companies are seeking to reshape their capital-market image and present themselves as technology firms. In that context, Xpeng raised $900 million for its robotics unit last month — the largest single funding round so far in China’s physical AI industry. Citi estimates the robotics division is valued at over $6.3 billion, approaching the roughly $6.5 billion valuation attributed to Xpeng’s EV business.
Analysts point to technical and supply-chain advantages behind the push. Lei Xiaoji (Lei Hsziao-ji), an analyst at Jefferies, noted Chinese automakers benefit from a largely reusable supply chain: Xpeng, for example, can reuse about 85 percent of its motors, chips and autonomous-driving software when developing humanoid robots. Manufacturers can also deploy robots in their own stores and factories, facilitating early-stage commercial data collection that is important for later applications.
Nevertheless, investors and analysts remain cautious. Jefferies says it currently sees no solid external orders for the automakers’ robotics projects and no clear guidance on next year’s robotics revenues. Shares of leading humanoid robotics firm Unitree have fallen on many trading days since its Shanghai listing, and the company’s founder warned the sector’s potential “ChatGPT moment” could be a decade away.
Transferring automotive technology to robotics is not seamless: algorithms and software developed for autonomous driving must be adapted to the far more complex and varied operating environments of humanoid robots. Solving those challenges will be critical if robotics is to become a sustainable new growth avenue for Chinese automakers.
Xpeng has said it plans to begin mass production of its robots by the end of the year and aims to expand into broader Chinese and international markets next year. Market reactions so far have been mixed: despite the announcements, the share prices of the involved automakers have not seen a significant uplift.
Note: an AI assistant helped prepare this article; the final content was edited and verified by our journalist.
