XPeng has begun small-batch trial production of its IRON humanoid robot at a factory in Guangzhou, with the mass production line now in its final integration phase2. The Chinese EV maker is targeting manufacturing capacity of more than 1,000 units per month by the end of 2026, ahead of a planned global rollout in 20271,10,15.
The company plans to first deploy IRON as an AI-powered retail sales assistant in its Chinese showrooms during the first quarter of 2027, then expand to overseas stores later that year5. CEO He Xiaopeng has taken personal charge of the robotics division since June 10, 2026. XPeng has allocated roughly $1.03 billion for physical AI research and development in 2026.
IRON stands 178 cm tall, weighs 70 kg, and is powered by a lightweight all-solid-state battery. Its onboard computing system uses three self-developed Turing AI chips with a combined 2,250 TOPS of computing power. The robot features 62 active joints and dexterous hands with 22 degrees of freedom. It runs XPeng's Vision-Language-Action (VLA) AI model and was trained on thousands of hours of human motion data. XPeng says IRON can reason and decide autonomously rather than follow pre-programmed routines. The robot also features electronic skin and a bionic spine3.
IRON was first unveiled at XPeng's AI Day in November 2025. XPeng's robot business has integrated the group's core capabilities in hardware development, AI large models, supply chain management, and marketing, reusing experience from its automotive operations in software-hardware R&D, intelligent manufacturing, and global channel construction.
XPeng staged a "Physical AI" event in Munich on July 16, where it premiered the MONA L03 compact coupe-SUV and showcased its broader ambitions in robotaxis, VTOL flying vehicles, and humanoid robots7,12. The company also unveiled what it called China's first production-ready, fully in-house developed robotaxi, built on its GX platform and engineered to meet Level 4 autonomous driving standards. He Xiaopeng rode aboard XPeng's fully autonomous vehicle during the company's first internal robotaxi test in Guangzhou on July 10. XPeng intends to license its robotaxi technology to third-party operators rather than operate its own fleet.
XPeng's shares jumped 5.45% to €12.38 following the IRON production target disclosure, though the stock remains 29.05% lower year-to-date.
XPeng is not alone among Chinese automakers moving into embodied AI. BYD has confirmed it is developing humanoid robots under a project codenamed "Yao-Shun-Yu," initiated in 2022 and operating under BYD's 15th Business Unit14. BYD Executive Vice President Li Ke said the company may adopt an open platform strategy for its robot, allowing third-party components and software integration. BYD plans to invest 100 billion RMB in AI and automotive intelligence initiatives. "The fundamental challenge in this space is that China's robots lack a brain, while US robots have strong brains but weak limbs," Li Ke said. "BYD aims to produce robots that excel in both dimensions".
Separately, Chinese robotics firm Ubtech launched its Uworld U1 series of companion humanoid robots for home use, calling them the world's first full-size, mass-produced "ultrabionic" companion robots8. Ubtech said it received over 13,000 orders on launch day, though many orders came from demonstration halls and government procurement programs rather than private consumers. The U1 lineup includes three models priced between 119,800 RMB and 990,000 RMB.
ANALYSIS XPeng's move to begin trial production and its billion-dollar physical AI budget represent a concrete step from concept to manufacturing, positioning the robotics effort as a second business pillar alongside EVs. The parallel entries by BYD and Ubtech underscore that Chinese automakers and robotics firms are converging on humanoid robots as a near-term commercial category rather than a distant research project.