Key facts
- Chinese automakers are investing significantly in humanoid robot development, following Tesla's lead.
- Xpeng's robotics division raised over $900 million in a recent funding round.
- Several Chinese automakers, including BYD and Chery Automobile, are actively developing or preparing to launch robotics ventures.
- The potential for higher profits in robotics compared to the automotive sector is a key driver for these investments.
- Hyundai plans to deploy Boston Dynamics' Atlas robot in its U.S. factory this year.
Chinese automakers are increasingly focusing on humanoid robots, viewing them as a significant future profit opportunity, much like Tesla has with its Optimus robot. This trend is driven by advancements in AI, particularly in large language models, which are enhancing robots' learning and task execution capabilities.
Xpeng's robotics division recently secured over $900 million in funding, valuing the unit at more than $6.3 billion. This round was led by IDG Capital, with participation from Tencent and Alibaba. Xpeng founder He Xiaopeng and co-president Brian Gu personally invested approximately $100 million into the unit. Xpeng's focus is on its 'Iron' humanoid robot, intended for commercial deployment.
Other Chinese automotive companies are also entering the robotics space. AiMOGA, the robotics arm of Chery Automobile, is reportedly preparing for an IPO, while BYD has unveiled its humanoid robot named Xiao Di. Changan, GAC, Li Auto, SAIC, and Seres are also developing similar technologies.
Michael Dunne, CEO of Dunne Insights, noted that Xpeng closely follows Tesla's initiatives and is committed to humanoid robots, seeing them as more promising than cars due to razor-thin profit margins in the automotive sector. He highlighted that Chinese automakers possess a manufacturing advantage but face the challenge of matching Tesla's AI capabilities.
Globally, companies like Agility Robotics, Apptronik, and Figure are also pursuing large-scale commercial deployment of humanoid robots. Hyundai, through its ownership of Boston Dynamics, plans to deploy the Atlas robot in its Georgia factory this year and aims for broader deployment by 2028, leveraging a partnership with Google's DeepMind. Additionally, Mobileye acquired Mentee Robotics for $900 million, and Rivian has its Mind Robotics spinout.