Chinese automakers pivot to humanoid robotics for profit

Chinese automakers are shifting strategic focus toward humanoid robotics as a new profit driver to offset thinning margins in the electric vehicle market. Xpeng Robotics recently secured significant funding, led by IDG Capital with participation from Tencent and Alibaba, bringing its valuation to over US$ 6.3 billion. Xpeng is developing the ‘Iron’ humanoid robot for commercial use in manufacturing and service sectors.

Other major manufacturers, including BYD, Chery, Changan, GAC, Li Auto, SAIC, and Seres, are also developing humanoid models. BYD has introduced its ‘Xiao Di’ robot, while Chery’s subsidiary, AiMOGA, is reportedly preparing for an IPO.

In a demonstration of advancing capabilities, Galbot robots participated in the Second World Humanoid Robot Games (WHRG) in Beijing. The robots performed in the first live autonomous tennis match, completing over 100 consecutive exchanges using the LATENT AI framework to learn complex athletic skills from human motion data.