Chinese electric vehicle maker Xpeng is targeting sales of between 550,000 and 600,000 vehicles this year, according to a report by Chinese technology portal 36Kr, citing a recent internal strategy meeting. A company source confirmed the report on Wednesday.
If achieved, the target would represent a 28–40 per cent increase from last year, when Xpeng delivered 429,445 vehicles. That marked a sharp turnaround for the automaker, with deliveries up 126 per cent from 2024 as it benefited from new model launches and aggressive pricing in China’s fiercely competitive EV market.
The Volkswagen-backed company is now seeking to redefine itself beyond automobile manufacturing. Earlier this month, Xpeng said it aims to be recognised as a “physical AI” company rather than just a carmaker, as it prepares to launch street trials of robotaxis and begin mass production of humanoid robots.
Speaking at an event in Guangzhou on Thursday, founder and chief executive He Xiaopeng said integrated artificial intelligence capabilities would be central to the company’s long-term competitiveness. He highlighted Xpeng’s in-house “Turing” AI chip as a key differentiator at a time when automakers are under intense pressure from prolonged price wars.
“XPeng definitely does not want to become a car company that simply sells hardware cheaply,” He said. “We want to become a global technology company, a company with strong differentiation.”
Robotics and automobiles are core components of so-called physical AI, an emerging field that combines AI software with real-world hardware such as sensors, chips and actuators. Automakers are increasingly leveraging these shared technologies to develop robots for factory automation, logistics and autonomous mobility.
Xpeng’s strategy echoes similar efforts by Tesla, which is expanding into humanoid robots and robotaxis amid a global surge in AI adoption. Reflecting the broader industry shift, chip designer Arm Holdings said this week it had reorganised to establish a dedicated physical AI unit to deepen its presence in the robotics market. Another Chinese automaker, Li Auto, announced a pivot towards AI in 2023, saying it invests more than 6 billion yuan ($859 million) annually in AI models, computing power and infrastructure.
At the Guangzhou event, He unveiled four revamped car models featuring upgraded software, including 3D navigation, enhanced hazard alerts beyond drivers’ immediate line of sight, and improved autonomous driving systems. He said Xpeng plans to start mass production of humanoid robots in the second half of 2026 and begin robotaxi street trials “very soon”.
Xpeng reported a net loss of 380 million yuan in the third quarter. He has previously said the company expects to break even by the end of 2025.
