Xpeng aims for new ventures beyond car sales

Chinese automotive manufacturer Xpeng is reportedly looking to offer its developed vehicle technologies to car manufacturers, component suppliers, and foreign technology companies to target new revenue sources beyond electric vehicle sales.

CarsCoops reported on Tuesday that this move is part of Xpeng’s efforts to expand its business as the company has yet to record profitability. The technologies potentially offered include electrical and electronic vehicle architectures, cockpit systems, driver assistance software, and the Turing artificial intelligence (AI) chip.

Xpeng currently maintains a collaborative relationship with Volkswagen (VW) in China. The two companies are collaborating on the development of electric vehicle architectures that are already being implemented in VW products.

This opportunity is becoming increasingly attractive for Xpeng, as revenue from non-vehicle sales businesses shows growth. While Xpeng’s vehicle sales revenue remained relatively stable in the second quarter, revenue from services and other businesses nearly doubled.

Evidence of external parties utilising Xpeng’s technology can be seen in VW’s products. In March 2026, VW will begin production of its first vehicle developed alongside Xpeng. The ID. Unyx 08 model will utilise an 800-volt electrical architecture with 85 kWh and 92 kWh battery options. The vehicle will also feature Level 2 driver assistance systems developed by Xpeng, rather than VW’s own technology.

Xpeng is also expanding its business into humanoid robotics through IRON. Small-scale production of these robots has already commenced, with mass production targeted to take place before the end of 2026.

Xpeng CEO, He Xiaopeng, stated that the humanoid robot business has the potential to generate higher margins compared to the company’s vehicle business. Consequently, technologies previously used solely for Xpeng’s vehicle development are being repositioned as standalone business products, opening opportunities for the company to generate revenue through technology licensing outside of car sales.