Xpeng says it is shifting toward physical AI amid stiff competition

Xpeng announced it is repositioning as a "physical AI" company and plans to begin street trials of robotaxis while aiming to mass produce humanoid robots in the second half of 2026.

Xpeng announced a strategic shift toward positioning itself as a "physical AI" company rather than solely an automaker. The company said it will soon begin street trials of robotaxis and plans mass production of humanoid robots in the second half of 2026. Founder and CEO He Xiaopeng highlighted in-house AI work centred on a "Turing" AI chip and unveiled four revamped car models with updated software features. The company is making the move as competition and a price war in China’s auto market have weighed on profits. Key facts: - The article says Xpeng aims to be known as a "physical AI" company rather than a business that only sells cars. - Xpeng plans to begin street trials of robotaxis "very soon," according to He Xiaopeng. - The company announced an intention to start mass production of humanoid robots in the second half of 2026. - Xpeng unveiled four updated car models with new software, including 3D navigation and expanded hazard alerts. - The article reports Xpeng posted a net loss of 380 million yuan in the third quarter, and He previously said he expected to break even by the end of 2025. Summary: The shift indicates Xpeng is expanding its focus from vehicles to integrated robotics and AI capabilities amid intense competition in China’s auto market. The company’s immediate next steps reported in the article are street trials for robotaxis and preparations to mass produce humanoid robots in the second half of 2026.