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While the commercial viability of humanoids has come under scrutiny, it hasn't dissuaded companies such as from
Xpeng shares have tumbled more than 45% this year, making them the worst performer among major EV players. Shares of EV giant are down more than 13% as sales have slumped. Chinese automakers accounted for more than half of the nearly 20 car companies globally that have entered the humanoid robotics sector through in-house development, investment or incubation as of August, according to Counterpoint.
The business diversification comes as slowing growth and weakening profitability put pressure on China's EV makers. The average profit margin in China's vehicle manufacturing sector stood at 1.5% in the first half of 2026, according to China Association of Automobile Manufacturers data cited by Counterpoint.
Xiaomi, Li Auto and Geely are also among EV makers making moves into the robotics sector, although their strategies differ.
"Given the slowing growth and weakening profitability in the EV market—particularly domestically—it is a natural strategic move for EV companies to diversify into new applications such as robotics," said Jing Yang, director of Asia-Pacific corporate ratings at Fitch Ratings.
"This allows them to pursue alternative growth drivers, achieve economies of scale for shared advanced technologies, and potentially improve profitability over the medium term," she said.
Investors aren't buying the story yet.
Xpeng shares fell after it raised $900 million for its robotics business last month, the
The raise valued the car company's robotics unit at — on par with the $6.5 billion estimated value for Xpeng's EV business, according to Citi.
Advantages over Tesla?
She pointed out that Chinese automakers can reuse a significant portion of their supply chain — Xpeng, for example, can use 85% of its motors, chips and smart driving software for humanoids. The robots can then be immediately deployed in the automakers' stores and factories, rather than having to wait for consumers to buy them, she added.
Xpeng said Tuesday it plans to begin mass production of its robots by the end of this year, starting in its own stores and business venues. Next year, the company plans to launch the robots to the broader market in China and overseas.
"Chinese players are the ones actually pushing it into daily use," Lei said, noting that in-house deployment makes it easier and cheaper for the automakers to collect data — which is
, a consumer electronics company that only launched its first electric car in 2024, at its Humanoid questions
Leading humanoid company Unitree saw its shares as they debuted in Shanghai last month, but the stock declined for 12 of the 16 sessions since its listing. Founder Wang Xingxing has could still take years, with the humanoid sector's 'ChatGPT' moment likely a decade away.
Reusing car technology for robots may not always be as straightforward as it sounds.
"I would say the real challenge is how they are going to make the algorithm and software stack that is used to be applied to the smart driving system also viable to the humanoid scenario, which is more difficult and more challenging," Lei said.
