At its Q2 earnings call on August 24, XPeng Chairman and CEO He Xiaopeng said the company's mass-produced robotaxi, powered by its second-generation VLA model, has completed more than 2,000 internal test rides in Guangzhou and gone through the full process for passenger demonstration operations1. XPeng has developed a cloud-based remote takeover platform and aims to launch passenger services without onboard safety drivers in 2027.
The company is simultaneously globalizing its autonomous-driving stack. Its second-generation VLA driving model has completed localization testing in Germany, with XPeng working to adapt a single model to both Chinese and European road conditions. A newly formed group-level business development team will bring XPeng's AI chips, VLA model, robotaxi technology, and humanoid robot capabilities to international markets.
The Wall Street Journal reported that XPeng is betting robots will be more profitable than its cars2. The headline-level framing suggests the company views its Physical AI portfolio — spanning robotaxis and humanoid robots — as a higher-margin business than vehicle sales.
XPeng's Q2 financials show the automotive business funding that ambition. Revenue rose 8% year over year to RMB 19.74 billion, vehicle deliveries reached 103,295 (up 64.8% sequentially), and gross margin climbed to 20.7%. R&D spending increased 32.1% to RMB 2.91 billion. ANALYSIS The 32.1% R&D increase — outpacing revenue growth by a wide margin — is consistent with heavy investment in the autonomous and robotics capabilities XPeng is foregrounding.
Separately, Leapmotor and FAW Group signed an agreement in Changchun on August 24 to deepen their strategic partnership. The collaboration spans capital investment, new energy vehicles, advanced driver assistance systems, powertrains, batteries, intelligent chassis, vehicle manufacturing equipment, lightweight components, embodied AI robots, and financial services. ◆ The inclusion of embodied AI robots and ADAS in the Leapmotor-FAW partnership scope signals that Physical AI is becoming a standard pillar in Chinese automotive joint ventures, not only at XPeng.
In battery-sector results, Gotion High-Tech reported first-half 2026 revenue of RMB 27.78 billion, up 43.2% year over year, with net profit attributable to shareholders surging 278% to RMB 1.39 billion. Power battery revenue jumped 61% to RMB 22.6 billion. Global power battery installations reached 28 GWh, up 43.3%, giving Gotion a 4.6% global market share and fifth-place ranking worldwide. In China, installations hit 20.75 GWh with a 6.19% domestic share and third-place ranking. International revenue rose 48.1% to RMB 9.48 billion, with overseas operations generating an 18.05% gross margin compared with 14.34% domestically.