July 2026, the overseas expansion of Chinese automobiles received dense signals. Xpeng Motors completed the global launch of the MONA L03 in Munich, Germany, followed by the release of a long-term Australian strategy in Melbourne. Within a month, this emerging automaker made moves simultaneously in the European and Australian markets, significantly accelerating its global expansion pace.

Data shows that Xpeng Motors' global cumulative sales have already exceeded 1.2 million units. Overseas deliveries in 2025 reached 45,000 units, a year-on-year increase of 96%. Entering 2026, Xpeng's overseas monthly sales are reportedly nearing 10,000 units. Xpeng Chairman He Xiaopeng proposed the target: overseas sales in 2026 double to over 90,000 units, overseas revenue share exceeds 20%, and overseas sales will account for half of total sales in the next five years.

According to Xpeng personnel, in the first half of this year, Xpeng's overseas sales growth was significant. The European market grew 154% year-on-year, the Asia-Pacific market grew 144% year-on-year, and full year overseas sales are expected to double. It was also stated that the company has formulated a detailed global strategic plan, aiming to achieve 1 million overseas sales by 2030.

Behind these numbers, is a transformation from "selling cars" to "building systems".

From "Exporting Vehicles" to "Establishing Local Presence"

The overseas expansion model relying solely on vehicle exports is facing increasingly high trade barriers. Xpeng's chosen path is: to establish production bases and localized service systems overseas.

Image source: Xpeng

On the production side, Xpeng has currently deployed three overseas production bases. In July 2025, Indonesia became Xpeng's first overseas local production country, and the first locally produced X9 was delivered. In September of the same year, the Austria Graz factory cooperating with Xpeng and Magna started mass production. The first batch of G6 and G9 rolled off the line. This was Magna's first time assembling complete vehicles for a Chinese automaker. In June 2026, Xpeng's Malaysia Malacca factory officially went into production, mainly featuring the RHD version G6.

These three factories correspond to Southeast Asia LHD markets, Southeast Asia RHD markets, and the European market respectively, thereby forming a differentiated capacity layout. Xpeng stated that the company is accelerating the layout of local production in multiple places, with new production bases in Latin America and Europe also in planning. It was further introduced: Xpeng will adopt the "Global Models, Local Production, Local R&D" model. It has currently established 8 major R&D centers and 6 major production bases globally.

On the sales and service side, Xpeng's overseas sales network covers 65 countries and regions, possessing 467 stores. Taking the Australian market as an example, Xpeng plans to launch five new cars within six months, with a layout of 3 flagship experience centers and 50 sales outlets. The company also established a factory original parts warehouse managed by FedEx in Melbourne, capable of achieving next-day delivery in major states.

Image source: Xpeng

This simultaneous landing of "Product + Channel + Spare Parts" contrasts with Xpeng's previous channel controversy—shifting from relying on a single dealer to multi-mode parallel operation is a necessary path for the brand to mature in overseas markets.

Notably, Xpeng is also exploring deeper localization. In September 2025, Xpeng activated its first European R&D center in Munich, which is already its ninth global R&D center. He Xiaopeng recently stated that the company is studying the possibility of utilizing factories with higher idle capacity from German automakers for production.

From R&D to production to service, Xpeng attempts to establish a complete industrial closed loop in Europe, rather than just transporting cars there to sell.

Intelligent Driving Going Global: The Toughest Card to Play

If production and service are the "hardware" of going overseas, then intelligent driving can be said to be the "software ace" in Xpeng's hand, of course also the variable with the greatest uncertainty.

Image source: Xpeng

In July 2026, He Xiaopeng personally went to Munich, Germany, and completed the localization acceptance test of the second-generation VLA (Vision-Language-Action) large model. This system trained on Chinese road conditions demonstrated stable adaptability in scenarios such as European urban main roads, narrow alleys, and high-curvature curves. Xpeng thereby became the first domestic automaker to connect the Chinese and European intelligent driving systems with "the same model".

The technical logic behind this is: do not rely on HD maps and preset rules, but make driving decisions through perceptual scene semantics. Compared with traditional solutions, this route avoids the long cycle of map collection and compliance approval when entering new markets. Additionally, the model can simultaneously support L2 assisted driving and L4 autonomous driving.

Image source: Xpeng

In terms of implementation pace, Xpeng plans to open Highway NGP functions in Europe by the end of 2026, and push City NOA via OTA starting in 2027. The intelligent driving landing time for the Australian market is also set in 2027.

But challenges are equally obvious. The promotion of high-end intelligent driving in right-hand drive markets still needs to cross strict local regulation approval barriers and complete deep scene semantics adaptation in unfamiliar traffic systems.

In June 2026, UN WP.29 officially released the global unified technical regulations for autonomous driving systems (ADS GTR), and new EU regulations in 2027 will also be implemented. Xpeng's successful acceptance of the VLA model in Munich, to some extent, is a pre-emptive "stress test" against these new regulations.

Conclusion

From Indonesia to Austria, from Malaysia to Australia, Xpeng is attempting to build a complete chain of "R&D-Production-Sales-Service-Intelligent Driving" simultaneously in multiple markets. This is no longer a story of a company selling more cars, but a sample of how Chinese intelligent automobiles can establish systematic competitiveness globally.

But the other side of the coin is equally clear: In Q1 2026, Xpeng's domestic deliveries declined 33.3% year-on-year. Overseas expansion is both a proactive strategic breakout, and also reflects the reality pressure under intensified domestic market competition. When a company spreads out in multiple unfamiliar markets simultaneously, the requirements for capital, talent, management, and compliance capabilities will rise exponentially. For Xpeng, which is currently in the critical period of going overseas, the real challenges may still be ahead.

[ZhiChePai News] July 31, XPeng Automotive announced that the MONA L03 made its Southeast Asia premiere at the Indonesia International Auto Show, with the right-hand drive version appearing simultaneously. According to officially disclosed information, this car will enter more than 65 countries and regions worldwide this year, further advancing its overseas market layout.

XPeng Display

The MONA L03 is the first SUV product launched by the XPeng MONA series for the global market, which was launched in July, offering both pure electric and extended range powertrain options, with 9 configurations available. The domestic suggested retail price is from 123,800 yuan to 156,800 yuan. According to official parameters, the pure electric version CLTC range can reach up to 650 km, the extended range version CLTC combined range can reach up to 1,380 km, and the pure electric range is up to 325 km. The vehicle dimensions are 4650×1920×1600 mm, wheelbase 2850 mm, trunk capacity is 539 liters, expandable to 1640 liters with the second row folded down.

Regarding product configuration, the MONA L03 adopts a 5-door 5-seater layout. Pure electric models are equipped with two battery options of 56 kWh and 69 kWh, while the extended range model has a battery capacity of 37.2 kWh. Official information shows that the new car is equipped with a 3C superfast charging AI battery and has multiple optimizations for energy consumption. Data released previously shows that the car underwent 22 aerodynamic optimizations, with a drag coefficient of 0.228.

For the overseas market, the MONA L03 will also be equipped with an overseas version smart cockpit system, supporting multi-language voice recognition to adapt to usage environments in different regions. This debut of the right-hand drive version in Indonesia is also regarded as part of XPeng's effort to promote localized product layout in the Southeast Asian market. Public information shows that XPeng Automotive's current overseas business covers 65 countries and regions, and the Southeast Asian market has entered countries such as Thailand, Malaysia, Indonesia, and Singapore. With the promotion of right-hand drive model displays and regionalized layout, the MONA L03 will later become one of the new models added to its overseas sales system.

July 16, 2026, Showpalast, Munich, Germany, XPENG's 'XPENG LIVE: PHYSICAL AI FOR ALL' Brand Day and MONA L03 Global Launch Event Kicked Off as Scheduled. In the industrial heartland of BMW, Audi, and Volkswagen, XPENG officially unveiled its first native global SUV -- MONA L03, starting from 123,800 yuan in China, launching in 65 countries and regions by the end of the year. Unlike the industry's traditional release rhythm of 'domestic first, overseas later', this car targeted the global market from the very beginning of development. With unified design, intelligent driving, safety, and powertrain standards, it completes the key leap for Chinese new energy vehicle companies from 'product exports' to 'full-stack technology going global'. As an automotive industry media professional, after witnessing this launch event on site, I clearly perceived: MONA L03 is not just an affordable intelligent SUV for young people, but also a landmark product for XPENG's physical AI technology landing globally and high-quality Chinese car exports.

Native Global Vehicle Forward Development, Class-Leading Product Power Directly Addresses Global Young User Pain Points

XPENG MONA L03 is positioned as 'The First Intelligent Fashion SUV for Young People', led by Juanma Lopez, former head of exterior design at Ferrari, the global design team crafted it. With 'Vital Flow' as the design core, it thoroughly breaks the traditional square and stiff impression of SUVs. Wide-body low-slung shooting brake stance, frameless doors, semi-hidden door handles, integrated with a 1.1㎡ super large curvature rear windshield. 22 aerodynamic optimizations over the whole vehicle, wind resistance coefficient as low as Cd 0.228, ranking among the top 5 global new energy mass-produced SUVs, balancing global aesthetics and range efficiency. Paint uses Porsche-sourced BASF premium coating process, Aurora Purple, Plum Jam and six exclusive color schemes, precisely matching the personalized aesthetic needs of the global young group.

On the cockpit level, the new car directly downgrades 300,000 yuan luxury car configurations to the 120,000-150,000 yuan price range, creating a cross-regional uniform light luxury experience. Interior soft package coverage exceeds 72%, standard equipment includes velvet faux suede ceiling, brushed metal speaker grilles. 26.8-inch super large W-HUD, 15.6-inch 2.5K central control screen, 20-speaker kW-class AI audio system form a triple-screen audio-visual system, industry's first AI immersive dual surround sound field. Front row all series 14-point massage seats, passenger seat equipped with zero-gravity leg rest, 256-color fading gentle wave ambient lighting brings extremely strong emotional value.

Space design fully considers global diverse living scenarios, 40 storage points throughout the vehicle, 23 sets of expansion interfaces, supporting magnetic, threaded, pegboard DIY modifications. Pure electric version equipped with 102L front trunk with drainage, standard trunk 539L, rear seats folded expands to 1640L, can accommodate surfboards, camping equipment, shooting equipment, perfectly adapting to urban commuting, outdoor camping, content creation and other mainstream lifestyles of young people globally. Famous fitness blogger Pamela evaluated on site as product experience officer, MONA L03 balances appearance and practicality, truly realizing 'Moving Comfort Space on the Car'.

One Car, Dual Energy and Dual Power, Covering Global Differential Energy Infrastructure

Global market energy structure, charging conditions differ significantly, XPENG MONA L03 launches Pure Electric, Super Extended-Range two power schemes, solve different regional user range anxiety.

Pure electric version provides 550km/650km two CLTC range, 100km power consumption as low as 11.5kWh, all series 3C fast charging, 10%-80% charging only needs 19.1 minutes, adapting to European, domestic perfect charging network city user daily commute.

Super Extended-Range version CLTC pure electric range 325km, combined range up to 1380km, WLTC fuel consumption at depleted state only 4.96L/100km, 0-100 acceleration 6.8 seconds, performance comparable to 300,000 yuan class fuel SUV. Extended-range system equipped with all series RNC active noise cancellation, depleted state driving noise and pure electric mode difference less than 1dB, paired with 6kW external discharge function, perfectly adapting to European long-distance highways, remote areas charging inconvenient, Nordic severe cold and other complex scenarios, truly realizing 'City Electricity, Long Distance No Anxiety'.

Domestic price covers 123,800 - 156,800 yuan, pure electric, extended-range share starting price, Plus/Max/Ultra SE three levels configuration gradient clear, at the same time launching limited-time car buying rights: order before August 31, appearance colors, comfortable seats, AI chassis, 20-speaker audio, active noise cancellation all free upgrades, significantly lowering young user high-end configuration threshold. Value 20,000 yuan ROAM exclusive theme set limited time 6,999 yuan, includes 20-inch sport wheels, Nappa leather, exclusive interior and exterior marks, satisfy personalized modification needs.

Core Breakthrough: One Turing VLA2.0 Intelligent Driving Solution Connects China and Europe, China High-Level Intelligent Driving Officially Goes Global

The most industry-milestone highlight of this launch event, is XPENG Turing 2nd Gen VLA Intelligent Driving Model achieving universal application of in China and Europe, XPENG becomes the first domestic car company relying on the same model to connect the two markets. Different from traditional intelligent driving relying on regional exclusive data, high-precision map development mode, VLA2.0 treats physical world understanding as underlying logic, relying on world model to generate massive simulation training data, greatly improving cross-regional road generalization capability.

He Xiaopeng and Head of General Intelligence Center Liu Xianming completed localization acceptance testing in Munich, this model trained based on complex Chinese road conditions, no need for large-scale European local data retraining, can fluently cope with European narrow alleys, large curvature bends, roundabouts, multi-pedestrian intersections, accurately identify multiple country traffic signs, actively follow 'Pedestrian Priority', 'Yield to Right' etc. European hidden traffic rules. Max model will push distilled version VLA2.0 in Q3, Ultra SE equipped with complete high-level intelligent driving, supports unguided urban roaming, spot to spot 2.0, P-gear direct start NGP and other frontier functions, 1500 TOPS self-developed Turing chip, first time bringing flagship computing power into 150,000 yuan level SUV market, intelligent driving hardware specifications exceed 500,000 yuan level overseas flagship models.

Cockpit system also completes global adaptation simultaneously, overseas version XOS 6 system supports English, German, French multi-language mixed recognition, different passengers speaking different languages conversing no need manual switch. At the same time becoming Asia-Pacific's first native accessing Google Maps Auto SDK car company, overseas navigation ecosystem fully fits local user habits. From 2027 XPENG will batch deliver local NGP intelligent driving system to global market, formally opening China intelligent driving global scale landing era.

Global Five-Star Safety Standards Without Compromise, Full-Scenario Active Safety Maximizes Export Safety Floor

As a model for global sales, MONA L03 synchronously satisfies China C-NCAP, Europe E-NCAP, Australia A-NCAP triple five-star safety development standards, can pass 42 strict crash tests, global market configuration no shrinkage. Body uses wrap-around armor front cabin, hot-formed steel occupant cabin, aluminum alloy anti-collision beam, all series standard 7 airbags, including 120L large volume passenger airbag and three-chamber remote airbag.

Exclusive active safety configuration in its class: full-scenario flat tire stability supports up to 180km/h, single wheel, double wheel, curve flat tire can all stabilize body deceleration. Three-level intervention for Driver Disability Assistance System, when sudden physical discomfort occurs automatically pull to side, emergency call for help. Industry premiere Ice & Snow AES emergency steering avoidance, within 130km/h can actively avoid stationary vehicles, road obstacles, adapts to ice surface, slippery road surfaces and other extreme road conditions. Battery meets 24 domestic latest safety national standards, no fire explosion under 4.65 times national standard strict test, paired with AI Battery Doctor 24-hour cloud monitoring, covers global high temperature, high cold, high humidity various climate environments.

Chassis hardware benchmark 300,000 yuan class midsize luxury SUV, Front MacPherson + Rear Five-link suspension, DCC variable damping shock absorption, Bosch new generation IPB braking system standard. AI pre-scanning chassis identifies road surface up to 120 meters, same class only intelligent anti-motion sickness mode, significantly reduce dizziness caused by bumps, continuous curves, balancing handling and comfort.

Systematic Global Layout Formed, XPENG Opens China Car Export 2.0 Era

MONA L03 global simultaneous launch, behind is XPENG years deep diving global R&D production sales service system support, thoroughly jump out of industry low price trade export 1.0 stage, entering 'Technology, Product, Ecosystem Synchronous Output' 2.0 new paradigm.

R&D end, XPENG global layout 8 major R&D centers, Munich independent R&D center special adaptation European regulations, road conditions, climate. Manufacturing end, cooperating with Austria Magna factory to achieve European localization production, Indonesia, Malaysia overseas bases synchronous production start. Supply chain jointly Bosch, Continental, ZF etc. global head enterprises deep coordination. Channel end, global sales network covers 65 countries, 1200+ stores, Europe 28 countries layout 290 dealers, G6, G9 already in Germany, France, Norway and other countries take Chinese brand sub-category sales first. Charging network covers 31 countries, access 2.7 million public charging piles, solve overseas user charging pain points.

As of now XPENG global cumulative sales break 1.2 million units, at the same time relying on full-stack self-developed physical AI base, layout AI Car, Humanoid Robot, Flying Car three major tracks, technology capability obtained Volkswagen Group recognition, the latter becomes 2nd Gen VLA Model global launch customer, mark China car company underlying smart technology realize reverse external output.

Industry Observation: MONA L03 is not just a high-volume SUV, but also a global answer sheet for technology democratization

In the past China new energy export, long time relying on price advantage seize low-end market, intelligence, self-developed technology hard to form core competitiveness. But XPENG MONA L03 gives new problem-solving idea: not relying on low price involution, with unified global standards, full set self-developed physical AI technology, leapfrog luxury configuration, let 120,000 level car possess flagship intelligent driving and cockpit experience, achieve 'Technology Equity'.

From industry dimension look, one intelligent driving model adapts China Europe two totally different traffic systems, is China high-level autonomous driving technology first time through global strict market field test verification, breaking overseas brands in intelligent driving field long-term monopoly. From brand dimension, in German luxury brand home court launch native global car model, prove China smart car already possesses facing global mainstream market product power and system power.

Facing future, XPENG will take MONA L03 as starting point, continuously promote physical AI technology global landing, 2027 overseas high-level intelligent driving comprehensive delivery, humanoid robot commercial, flying car scale production, one unified AI base connecting multi-category smart terminals. For the whole China car industry, XPENG MONA L03's arrival, means China car company export officially say goodbye to 'product export', turning to technology, ecosystem, brand all-round output, bring new competition order for global new energy market.

July16th evening, XPeng MONA L03 globally launched. This model positioned as a 'Smart Fashion SUV' for young users comes originally equipped with Linglong SPORT MASTER e tires.

At this hyper-competitive juncture of the 150,000 RMB class new energy SUV market, this matching combination is worth breaking down.

Why XPeng Chose Linglong Tires

L03's core selling point is 'Intelligent Driving Equality' — dual Turing AI chips, 1500 TOPS computing power, 2nd generation VLA system, bringing high-level intelligent driving to the 150k price point. This pricing strategy determines its requirements for the supply chain: performance cannot be compromised, and costs must be controllable.

As a key component directly contacting the road surface affecting range and NVH, tires need to meet standards in three indicators simultaneously: low rolling resistance, quietness, and wet grip, while the price must be competitive.

Linglong SPORT MASTER e fits exactly in this position. This product has obtained the highest EU Tire Label AAA certification, with hard metrics supporting grip, low rolling resistance, and quietness, and as a domestic tire, it has cost advantages over foreign brands.

More importantly, Linglong's customer base in the new energy supply chain — BYD, Geely, Chery, Seres, Leapmotor, etc. — has already formed scale effects and quality control stability. When OEMs evaluate supply chain risks, they tend to choose suppliers with substantial vehicle-mounted verification.

XPeng choosing Linglong is not a tentative cooperation but an addition on top of an existing mature supply system.

Where is the differentiation of SPORT MASTER e

For the category of new energy specialized tires, everyone is making them, but few products truly meet OEM supply requirements and end-user perception simultaneously. SPORT MASTER e's differentiation is reflected in three levels.

Technically, the AAA label means it reached the highest EU grade in rolling resistance, wet grip, and noise, which is rare in domestic tires. Low rolling resistance directly affects range, wet grip concerns safety, noise affects driving experience — these three happen to be the most frequently complained-about tire-related issues by new energy vehicle owners.

Linglong achieving top levels in these three dimensions simultaneously indicates substantial technical accumulation in formulations and structural design, not relying on a single metric to dominate.

From the market validation perspective, this product was shortlisted for the UK WhatTyre '2025 Eco Tire of the Year Award' final nominations, marking the first time a Chinese tire has entered the final competition for this award.

In the domestic 'China Auto Strict Selection' evaluation, it also won the 'Top Ten Tires of the Year' and 'Annual Green Environmental Protection Award' double honors. Endorsement from third-party evaluation agencies provides reference value for OEM supply decisions and end-consumer purchases.

From the customization perspective, Linglong designed the sidewall for L03's youth positioning — oxygen-resistant suede black process, XPeng logo contrast with suede black background, aperture element integration. This customization appears to be 'face work' in the supply business, but actually reflects Linglong's response speed and willingness to cooperate with OEM needs.

For new power brands like XPeng, the unity of detail texture is part of the brand tone. Linglong willing to invest in this indicates the supply relationship between both sides is not a simple buy-sell but involves a certain depth of synergy.

Linglong's Position in the New Energy Supply Track

Linglong has ranked first globally in new energy supply tire sales for consecutive years. This 'first place' is not supported by a single client but by coverage — layout in both economy and mid-to-high-end segments.

In the list of supply car companies, there are traditional domestic brands（BYD, Geely, Chery）, also joint ventures（Dongfeng Nissan, GAC Honda）, and new forces（Seres, Leapmotor）. The diversity of the customer structure reduces the risk of single-client dependency.

Looking deeper, Linglong's overseas capacity layout is becoming the second growth curve for new energy supply business. China's new energy complete vehicle export growth is very fast, June exports increased by 152.7% year-on-year. Tires as supply components going overseas with complete vehicles is a confirmed increment.

Linglong has ready-made capacity overseas, no need to ship from domestic. Against the background of increasingly complex international trade barriers, this is a substantial competitive advantage.

Several Judgments at the Industry Level

This supply indicates many issues behind it. The first judgment is that the competition for domestic new energy supply tires is shifting from 'who can do it' to 'who can do it stably'. OEM requirements for tires are no longer 'just needs to fit', but finding a balance point between rolling resistance, quietness, wet grip, durability, and cost.

Suppliers able to meet these conditions simultaneously will gain more supply share. The share of leading enterprises like Linglong, Sailun, and Zhongce in the new energy supply field will continue to increase.

The second judgment is that customization is becoming standard for supply business. OEMs attach increasing importance to the visual unity between tires and complete vehicle design. Details like sidewall logo, tread design, and color matching are shifting from 'bonus items' to 'basic items'. Tire enterprises capable of providing customized services will hold advantages in supply bidding.

The third judgment is that overseas capacity is becoming a moat for supply business. As EU anti-dumping measures land and US trade reviews on Southeast Asian tires continue, tire enterprises with capacity overseas can not only serve Chinese complete vehicle exports but also directly meet localization supply needs of overseas OEMs. Linglong's bases in Thailand and Serbia have taken the first move in this round of competition.

Whether XPeng MONA L03 can stand firm in the 150k level market depends on product power and delivery capability. But in this supply link, Linglong has played its cards correctly. What remains to be seen is whether this set of SPORT MASTER e tires can build a reputation in end-user actual use, and whether Linglong can extend XPeng as a client from domestic supply to overseas supply.

Author | Guo Yue

Editor | Zhihao

He Xiaopeng: Not only looking at scale but also long-term development, three new cars queued up in the second half of the year, welcoming the strongest sales growth.

CarDaily reported on May 28. Just now, Xpeng Group Chairman and CEO He Xiaopeng spent most of the time on the first-quarter earnings conference call responding to Xpeng's business layout in intelligent cars, Robotaxi, humanoid robots, and other aspects.

Regarding new cars, three new cars will be released globally in the second half of this year, and Xpeng will welcome the strongest sales growth curve in history.

Regarding overseas business, in April this year, Xpeng's overseas sales volume broke through 6,000 units for the first time, with a goal to continue exceeding 10,000 units per month in the fourth quarter. Starting from the second quarter, the revenue contribution from international business is expected to exceed 20%.

Regarding Robotaxi, the Xpeng GX fleet has already started small-scale L4 testing. Xpeng's goal is to start Robotaxi demonstration operation services in Guangzhou in the third quarter of this year. After the second-generation VLA lands overseas, Xpeng will also actively explore deploying affordable Robotaxis in both domestic and overseas markets.

Regarding humanoid robots, the software and hardware R&D progress of Xpeng's new generation IRON humanoid robots for mass production version is proceeding smoothly, planned to debut officially in the third quarter of this year. Xpeng aims to achieve mass production of high-end humanoid robots by the end of this year, first trial commercialized in Xpeng stores, and delivered to Chinese and overseas commercial customers starting next year.

Starting next year, humanoid robot hardware revenue and AI model revenue will become one of the important drivers of Xpeng Group's revenue and gross profit growth.

Just today, Xpeng Group released the Q1 2026 financial report.

▲ Xpeng Q1 2026 Financial Data

Specifically, Xpeng's Q1 2026 delivery volume reached 62,700 units, a year-on-year decline of 33%, total revenue of 13.03 billion Yuan, a year-on-year decline of 17.6%; gross margin improved year-on-year by 5 percentage points to 20.6%, net loss increased to 1.78 billion Yuan. These performances are partly due to the continued increase in R&D investment. In the first quarter of this year, its R&D expenses were 2.91 billion Yuan, a year-on-year increase of 46.8%, and further increased compared to the 2.87 billion Yuan in the fourth quarter of last year.

Regarding Q1 performance, He Xiaopeng stated that Xpeng did not just focus on scale when the market challenge was downward, but focused more on the balance between sales volume and operating quality and long-term development. He is very confident that the sales volume of every quarter in the rest of this year will grow significantly quarter-on-quarter.

As of the time of reporting, Xpeng Group's US stock price was reported at $16.845 (approximately 114.2 RMB) / share, up 2.4%, with a market cap of $16.124 billion (approximately 109.3 billion RMB).

▲ Xpeng Group US Stock Price as of Publication Time

01.

He Xiaopeng 11 Questions Show Determination:

New Cars, Robotaxi, and Robots Will All Be Globalized Well

On the Xpeng Group earnings conference call held tonight, Xpeng Group Chairman and CEO He Xiaopeng and Executive Vice Chairman and Co-President Brian Gu provided detailed responses on the key focus and planning for future development.

▲ Xpeng Group Chairman and CEO He Xiaopeng (right in picture), Executive Vice Chairman and Co-President Brian Gu (left in picture)

Below is the main content of this conference call, edited by CarDaily without changing the original meaning:

Q1: After the new model GX was on the market for a week, the response was enthusiastic. What is the current total order volume? What is the single-unit gross margin level? What is the expectation for its monthly sales target?

He Xiaopeng: As of now, the order performance of GX has exceeded our expectations, and the situation is very good. We observed some interesting data: First, the waiting time for the pure electric flagship model has exceeded 30 weeks, and orders for the flagship version are still growing rapidly.

▲ Xpeng GX

From the order structure, in the early stage of GX launch, the flagship version accounted for more than 80% of the share, and it is still the model with the highest sales proportion. At the same time, the sales proportion of GX's Max version is less than 5%, lower than our initial expectations.

In terms of powertrain type, the initial order volume of the extended-range version was lower than the pure electric version, but it is now gradually moving closer to the pure electric version, especially after we strengthened marketing in areas where we were originally not good at marketing, such as the north and west, this trend is more obvious.

For GX, our primary task is to push for capacity ramp-up to the fullest extent, while adhering to providing high-quality service and quality, ensuring GX can achieve long-term stable delivery. I am most concerned about the sustained performance of GX.

As a flagship model of Xpeng, GX's gross margin is very good. Previously, when I communicated with the media, I mentioned that if there is only one SKU, the gross margin may not meet expectations; but in reality, GX's gross margin is better than our overall gross margin level.

I also want to add a point: Starting from this year, all new cars of Xpeng will focus on two new priorities. First, how to pursue commercial quality in commercial configuration and commercial pricing. Second, we do not pursue an initial sales surge followed by a decline, but pursue a more stable sales performance.

To this end, we have established a new system in supply chain management, modularization, ramp-up processes, and supply chain security.

I believe that starting from GX, we will be able to better balance business benefits and scale, achieving more stable long-term sales.

Q2: What are the plans for Robotaxi business operations domestically and going global? Has the recent tightening of domestic regulations affected business progress? How do you view the potential impact of B-side business on Xpeng's C-side passenger vehicle sales?

He Xiaopeng: We noticed the recent tightening of domestic regulations on autonomous driving, but this has not affected our overall pace.

From my perspective, the real business opportunity for Robotaxi will arrive in 2028. Currently, Xpeng is trying to run through this model both domestically and globally, landing and implementing the VLA 2.0 system in China and overseas.

In China, we will conduct rapid R&D and testing through existing models and plan to launch an economy vehicle for Robotaxi scenarios in 2027.

Regarding the business model, I want to emphasize two points: First, we only provide products and offer a commission model, not participating in operations directly, so we will have a large number of partners. Second, the main battlefield for Robotaxi is the global market, and I believe the global market has huge business value.

Regarding your concern about the impact of B-side Robotaxi on C-side sales, I want to add a few points of view.

First, Robotaxi testing at the current stage is actually having a positive impact on the C-side, because the future VLA system will provide various different intelligent assisted driving strategies.

Secondly, as policies and regulations gradually relax and commercial operation gradually lands, Robotaxi vehicles will gradually separate from C-side vehicles, forming a second independent vehicle track, becoming a new type of transportation tool.

Q3: In the second half of this year to about a year in the future, what important trends and changes will the VLA 2.0 OTA bring?

He Xiaopeng: I think that within this year, Xpeng's VLA capabilities will experience two important nodes.

▲ Xpeng VLA 2.0 Push First Month Assisted Driving Mileage Proportion Breaks 50%

The first node may appear in the third quarter of this year.

In the past period, Xpeng VLA mainly focused on engineering, safety, and basic customer experience, without focusing on improving performance upper limits. In the third quarter of this year, we will greatly improve the performance upper limit of VLA. The user experience will manifest as vehicles being smarter, having stronger generalization capabilities, and greatly reducing the disengagement rate.

The second node is the end of this year.

We hope to fuse VLA and VLM capabilities through organizational mergers. At that time, vehicles will not only have the "driver ability" of autonomous driving but also possess language communication capabilities, and even lay the foundation for future "car butler" capabilities.

We believe this will be the preliminary form of L5 level capabilities. We hope to gradually achieve this goal.

Q4: What differentiation advantages does the humanoid robot have in hardware costs in the next year? What is the business model overseas?

He Xiaopeng: The mass production version of IRON is designed according to automotive-grade safety and reliability. Recently, we have completed the development of self-developed dexterous hands. Flexibility has significantly improved, while costs have significantly decreased.

In the process of robot mass production, we encountered many challenges different from car mass production. For example, the hardware of current humanoid robots does not fully consider safety, reliability, stability, and maintainability—it does not follow automotive-grade standards.

▲ Xpeng Plans to Mass Produce Humanoid Robots by the End of 2026

In addition, many energy groups have not considered how to scale, how to solve supply chain yield rate and quality issues, nor have they considered whether the underlying architecture of hardware and software should be placed locally or in the cloud, and if placed in the cloud, how to solve a series of issues such as data privacy, traffic, computing power, latency, etc.

For this reason, we have become a robot company that almost self-develops core hardware and software in full-stack (except for battery cells) since the beginning of last year. This enables us to achieve high integration.

I believe the initial hardware cost structure of robots will be close to a car, but in the long run, we will gradually obtain more economical scale solutions. But today, the robot's cost structure is very close to a car.

Regarding overseas markets, just like our car business, our robots have considered globalization from the first product.

The sales logic of robots may be more adaptable globally than in China, and acceptance among grassroots employees overseas is higher.

We have done a lot of work on how hardware meets overseas policies and how software and data meet local regulations.

For example, Xpeng's current VLA data processing volume is about 200 million Tokens per hour. If the robot model is placed in the cloud, it is estimated that 500 million to 1 billion Tokens per hour will be required, and traffic costs may exceed 100GB. Therefore, completely relying on cloud computing power is not feasible.

We comprehensively considered overseas hardware, software, data privacy, comprehensive usage costs, and commercial logic from the beginning. As domestic business advances, we hope to see new changes in robot business overseas next year as well.

Q5: Besides Guangzhou, can you reveal the Robotaxi city expansion plan and timeline as well as progress in applying for the corresponding license?

He Xiaopeng: Currently, our Robotaxi business only considers Guangzhou. We have already obtained the Guangzhou testing operation license and hope to run through the complete technology, product, and business model in Guangzhou first.

Afterwards, we will find more partners domestically and overseas for them to operate locally.

Since announcing this plan, we have received a large number of requests from overseas and some domestic partners. They are very interested in observing our overall progress in the next year.

After we launch economy vehicles suitable for Robotaxi scenarios and better overall solutions in 2027, I believe everyone will see our continuous improvement in Robotaxi commercialization capabilities.

▲ Xpeng Will Launch Three Robotaxis in 2026

Q6: What are the guidance for vehicle gross margin and company overall gross margin in the second quarter?

Brian Gu: Our overall gross margin in the first quarter is very close to the fourth quarter of last year. We indeed observed a trend of rising raw material costs, some of which have been reflected in the first quarter. We expect these cost factors to continue in subsequent quarters of this year.

In the second quarter, we launched the full-size SUV GX, and delivery will start in subsequent quarters. GX's gross margin is at the highest level in our entire product portfolio.

From the product structure perspective, we expect to see better model combinations in the second quarter and the second half of the year. Comprehensive factors, we expect the company's total gross margin in the second quarter to maintain a level roughly similar to the first quarter.

Q7: Can you talk about the growth catalysts for the overseas market, as well as sales and profit contributions in the next three years? Also, which model's profit is better, export or local production?

He Xiaopeng: The overseas market is one of the most important strategic directions for Xpeng. I hope that in the next five years, the sales volume of the overseas market will account for half of our total sales volume. At that time, the revenue and profit contribution from overseas will exceed domestic.

I am very confident that as Xpeng launches multiple global models in the second half of this year, Xpeng's globalization speed will be significantly improved in the next two years.

Whether in hardware, AI software, channels, services, or supercharging capabilities, we will make huge investments overseas, and overseas profit performance will also be very good.

Our R&D investment in cars this year is mainly concentrated in the overseas market. Therefore, I am very confident about achieving accelerated growth in the overseas market in the next three years.

Brian Gu: I will add a few points. First, from the latest international sales figures, overseas sales volume has accounted for nearly 20% of our total sales volume. And last year, international sales volume accounted for about 10% of the global total sales volume.

Second point, even when facing some tariff issues and cost increases this year, the single-vehicle profit of our international business is still significantly better. The contribution of international business to our profit is very considerable.

We expect this growth momentum to last throughout the year. I believe maintaining the proportion of overseas sales volume at around 20% throughout the year is sustainable. Of course, the Chinese market itself is also expected to have significant growth.

Regarding going global, we are increasing overseas localization investments. The overseas market will make an important contribution to the company's overall momentum and profitability.

Q8: In this year and next year, what proportion of models is expected to be produced in local factories? Will this proportion differ across different regions?

Brian Gu: Currently, we have two factories in Southeast Asia, located in Indonesia and Malaysia, mainly serving the local markets. In addition, we cooperate with Magna in Austria to produce vehicles for the European market.

These three manufacturing bases will increase capacity this year, and there will be new models produced in those local markets.

For Southeast Asian countries, localized production mainly satisfies local market demands; while the Austria factory serves the European market.

I expect most of our European sales will come from localized production. In other regions where manufacturing facilities have not been established, we will continue to maintain the current business model.

As we improve sales and market share in these large markets, we are actively exploring ways to increase localized production capabilities to meet localization content rules and gradually move towards a deeper localized production model.

Q9: Can you give a few specific examples to explain the commercial functions and application scenarios of Xpeng robots in its own stores and customer stores? What is the price strategy for sales to the outside? Since its cost structure is close to a car, can the sales strategy also be analogous to cars?

He Xiaopeng: Our robots are different from most robots. We hope it is used in an environment interacting with humans. Therefore, we first consider commercial environments, and the initial application scenarios are tour guide, sales guide.

▲ Xpeng New Generation IRON Service Scenario

Whether in China or overseas, robots can introduce products in stores, for example, introducing vehicles in our stores. Although the final transaction may still need to be handled by humans, company introduction, product introduction, performance explanation, and other work can be assisted by robots.

Based on the fact that tour guiding and sales guiding have been verified in a large number of jobs globally, we hope to expand to deeper scenarios of sales retail, such as cashier positions. The number of cashier and retail sales positions is very large globally.

Therefore, from the commercialization path perspective, Xpeng will focus on deepening from the sales guide perspective, while we will open up a lot of cooperation.

If our partners have different job requirements, they can generate data with us, perform pre-training and post-training, and thus generate different models. These models can be placed on our external cooperation platform for users to download and activate.

Regarding future commercialization pricing, we are still discussing. But it can be seen that our robots are very similar to cars, so their sales price will certainly be more expensive than an ordinary car.

There will be good gross margins on hardware in the early stage. At the same time, our robots also have a large amount of data processing in the cloud, so we hope to take a faster step in software charging.

We believe that break-even targets can be achieved within a few months in the overseas market, while it may take slightly longer in the domestic market.

Therefore, we are constantly thinking about the commercial logic of robots from the perspective of how customers use them, why they buy them, and how they get value.

Q10: Can you share your thoughts on the evolution of the group's long-term business model? How do you view the timing of revenue generation from various strategic sectors, as well as changes in the medium-to-long-term revenue structure?

He Xiaopeng: At the current stage, the group's main revenue source is certainly scale effects, mainly from hardware; if looking at the ecosystem, it is system effects.

But looking globally, very few car manufacturers can build a software platform on top of the scale effect of hardware to form the next level of network effects - that is, achieve software charging and multi-sided network effects.

Further back, with the rise of overall intelligent AI capabilities, there will also be ant colony effects. Just like ant colonies, forming new synergy between centralized and decentralized.

These three effects will gradually overlap. Each effect involves different competitive barriers and corresponds to different business logic.

Q11: How is the service revenue trend this year? Is there a possibility for technical licensing or technical services with our partners to expand overseas?

Brian Gu: We continue to maintain the previous guidance: In 2026, the total revenue from technology, services, and IP licensing will be roughly the same as in 2025.

Starting from the second quarter of this year, we will scale up delivery of Turing Chips to partners.

▲ Xpeng Turing Chip Obtained Volkswagen Confirmation

We continue to believe that achieving technology commercialization and monetization through such cooperation is a very attractive business model for us.

Given that Xpeng internally possesses a large amount of proprietary technology, we hold a very open attitude towards expanding such technology commercialization opportunities.

02.

Gross Margin Growth Highlights Operating Resilience

Expected Delivery Volume and Revenue to Increase Significantly in Second Quarter

From the Q1 2026 financial report of Xpeng Group, the total revenue of Xpeng Group in Q1 2026 was 13.03 billion Yuan, down 17.6% compared to Q1 2025, and down 41.4% compared to Q4 2025.

▲ Xpeng Q1 2026 Financial Data

Among them, Xpeng's automotive sales revenue in Q1 2026 was 11.0 billion Yuan, down 23.5% compared to the same period of Q1 2025, and down 42.3% compared to Q4 2025. 

Regarding net loss, its net loss in Q1 2026 was 1.78 billion Yuan. In Q1 2025, this figure was 660 million Yuan. Net profit in Q4 2025 was 380 million Yuan.

Regarding gross margin, Xpeng Group's gross margin in Q1 2026 was 20.6%, exceeding Li Auto (7.9%) and NIO (19.0%), with automotive gross margin at 12.1%. In comparison, it was 10.5% in the same period of Q1 2025, and 13.0% in Q4 2025.

▲ Xpeng Q1 2026 Gross Margin Steady

As of Q1 2026, Xpeng's cash on hand was 42.09 billion Yuan.

For the second quarter of this year, Xpeng Group expects delivery and revenue scale to achieve significant increases.

▲ Xpeng Q2 2026 Performance Guidance

Regarding delivery volume, the official forecast expects vehicle deliveries for the quarter to reach 100,000-106,000 units, with a year-on-year change of approximately -3.08% to 2.73%, and a quarter-on-quarter growth of approximately 59.54% to 69.11%.

Regarding revenue, the official forecast expects total revenue for the quarter to be 19.6 billion to 20.8 billion Yuan, with a year-on-year increase of 7.25% to 13.82%, and a quarter-on-quarter increase of 50.38% to 59.59%.

Brian Gu stated: "We will accelerate the large-scale commercialization of Physical AI applications with company-level strategic priority."

03.

Conclusion: Xpeng Accelerates Towards the End Game of Physical AI

From the information disclosed in the Q1 2026 financial report and conference call, Xpeng is on the eve of Physical AI applications moving from mass production landing to explosive scale growth.

Its Physical AI layout is welcoming a historic breakthrough in commercialization mass production: The proportion of second-generation VLA smart driving mileage broke through 50%, the first full-stack self-developed Robotaxi has rolled off the production line, the humanoid robot goal is to mass produce by the end of the year, flying cars are entering the eve of mass production. Multiple business lines are simultaneously approaching explosive scale growth, jointly building a solid foundation for Xpeng to move towards the era of Physical AI.

Under this circumstance, Xpeng Group's gross margin still maintained at a high level of 20.6%, showing strong operating resilience. From the obvious rebound in delivery guidance in the second quarter, Xpeng is expected to welcome strong sales growth.

With VLA architecture iteration, the successive landing of multiple new cars and robot products, Xpeng is expected to build a more complete business ecosystem in the fields of intelligent mobility and embodied intelligence. Its future development potential is worth continuous observation.

"Xpeng GX sales data is at least exceeding my expectations, perhaps the product matrix head's expectations might be even higher." On May 21, He Xiaopeng, Chairman and CEO of Xpeng Group, stated that Xpeng GX large orders reached 24,863 units in 12 hours since launch, with two purchased by himself.

On May 20, Xpeng Auto's first all-size new tech flagship SUV — Xpeng GX went heavy launch. The new car is positioned as a new tech flagship facing the physical AI era, launching pure electric and super extended range dual power systems, limited-time equity price starting from 269,800 yuan.

He Xiaopeng stated: "Regarding the pricing of GX, we went through multiple rounds of fierce discussions, and ultimately gave a very sincere price based on ensuring a certain profit." Xpeng Group Product Matrix General Manager Wu Anfei revealed: "From a product power perspective, Xpeng GX targets 'Series 9' SUVs, but from a pricing perspective, Xpeng GX targets 'Series 8' SUV products."

With the announcement of Xpeng GX large order data, Xpeng Group's stock price also surged on May 21. As of the close on May 21, Xpeng Group Hong Kong stock price rose 4.57%, quoted at 60.6 HKD/share, with intraday gains exceeding 8% at one point.

As the culmination of Xpeng's 12 years of technical accumulation, GX integrates three core technologies: Robotaxi intelligent driving, flying car safety redundancy, and embodied intelligence chip architecture, directly addressing seven industry pain points — large cars should be easy to drive, interior has quality but not showy, driving is enjoyable, safe enough, low energy consumption, smart enough, sufficient space. The entire series is standard-equipped with over 100 leading technologies at the 500,000 level, redefining the 300,000 level flagship standard.

Xpeng GX body size reaches 5,265×1,999×1,800mm, wheelbase 3,115mm, imposing presence. Universal Sky-Ground front and rear through lights paired with aerospace-grade ceramic 24K gold logo, identification maxed out; four-door electric doors support anti-clamp anti-drop, active obstacle avoidance, designed for next-gen unmanned driving. Exterior offers Peak White, Polar Black, Fjord Gray, Danxia Red, Cloud Desert Gold (Matte), Kunlun Cloud Realm (Silver Grey Bi-color) 6 color schemes, among which Matte Cloud Desert Gold uses BASF top matte clearcoat, paint film quality benchmarked against ultra-luxury brands.

To solve the pain points of difficult turning and parking for large cars, GX full series standard-equipped rear-wheel steering, achieving 5.4m minimum turning radius, flexibility comparable to A0-class sedans, turning and parking calmly. At the same time equipped with million-pixel AI digital projection headlights, possessing 1.3 million pixel-level precise shading capability, can achieve following distance warning, driving intention projection, welcome light carpet, etc.; UWB key links electric side steps, sensing welcome from 3.5 meters away, matched with industry-leading 6 sets of external microphones and 2 external interactive speakers, external voice vehicle control is convenient, ritual sense full.

Xpeng upholds the "Technology Luxury" concept, rejecting piled-up flashy configurations, carrying hardcore technology with simple design. Interior offers Dawn White, Forest Mist Purple, Platinum Brown three color schemes, utilizing a star-soft translucent leather craftsmanship where ambient lighting is hidden beneath the leather. When lit, it shines like a galaxy; when off, it blends seamlessly.

In terms of space, GX creates a cross-level experience of "First row beyond Series 7, Second row Maybach, Third row Alphard". 180mm ultra-wide second-row central aisle + 1,324mm open height, elderly and children pass freely; Third row is the widest in class, and is the only third row in class that can lie flat, seats support 0-180 degrees backrest and headrest electric stepless adjustment, full heating function, equal rights with first and second row.

Storage capabilities are equally impressive; with 6 people fully loaded, the trunk capacity reaches 673 L (best in class). After folding the third row in a 50:50 independent electric manner, it can switch between a large five-seat or super large four-seat mode, with a maximum expansion capacity of 1,748 L, easily accommodating large items. Additionally, there are 62 high-precision storage spaces throughout the car plus 3,180W of interior power supply, suitable for diverse scenarios like outdoor office work and travel photography.

As the first mass-produced Robotaxi model featuring full-stack self-developed technology, GX is equipped with the Turing AI chip across the series, offering up to 3,000 TOPS computing power. Empowering the second-generation VLA intelligent driving system, it achieves a leap from "having roads to travel" to "traveling even where there are no roads". Capabilities such as navigation-free roaming in park garages and starting from a standstill in all scenarios lead the class.

Regarding safety, GX adopts a 16,000T front-and-rear integrated die-casting "Castle Body" with a torsional stiffness of 56,000 Nm/deg, capable of withstanding a 720° five-link chain extreme collision test. It covers 11 airbags across all three rows and debuts the "All-Weather, All-Scenario Steady Ride System," which automatically executes "Warning - Lane Change - Parking - Help Call," protecting the whole family during travel.

In terms of power and range, pure electric four-wheel drive version CLTC range 750 km, energy consumption 15.2 kWh/100km, 5C supercharge 12 minutes recharge 525 km; Super Extended Range version comprehensive range 1,585 km, zero to hundred acceleration 4.98 seconds, balancing long range and strong power.

Xpeng GX takes "Dedicated to all people struggling for themselves and for the era" as the core proposition, accurately anchoring user groups balancing family responsibility and self pursuit. In the large six-seat SUV red ocean market, GX jumps out of traditional "configuration piling" logic, taking Physical AI technology as the core, achieving "Easy to drive, easy to use, safe, smart" full dimension breakthrough, ending high-end SUV "Trade-off Difficulty".

From industry layout perspective, GX is not only a key model for Xpeng brand upward, but also an important landing carrier for its transformation from car company to "Physical AI Company". As of now, Xpeng has built 9 major R&D centers globally, R&D personnel ratio over 40%, and started localization production projects in Indonesia, Austria, Malaysia, globalization strategy continues to advance.

In the future, Xpeng GX will, with high-level technology standard across series, cross-level product power and sincere pricing, reconstruct the 300,000 level flagship SUV value benchmark, accompany users carrying worries and love, calmly rushing to mountains and seas, exploring infinite boundaries of life.