Chinese Automakers Follow Tesla Into Humanoid Robot Race

Chinese automakers are expanding beyond electric vehicles and investing in humanoid robots, following Tesla’s push to turn artificial intelligence-powered machines into a major future business.

The growing interest comes as advances in AI are improving robots’ ability to understand and perform complex tasks. Companies believe techniques developed for large language models could help robots learn a wider range of physical activities.

Among the most active companies is Xpeng, whose robotics division recently raised more than $900 million at a valuation exceeding $6.3 billion. The company described the financing as one of the largest private funding rounds in China’s embodied AI sector, which focuses on AI systems integrated into physical machines.

Xpeng’s robotics efforts are centred around Iron, a humanoid robot designed for commercial applications. The company is betting that its automotive manufacturing experience can help it compete in robotics.

Other Chinese automakers are also entering the field. Chery’s robotics unit AiMOGA is reportedly preparing for an IPO, while BYD has introduced its Xiao Di humanoid robot. Companies including Changan, GAC, Li Auto, SAIC, and Seres are also developing robotics projects.

Analysts say Tesla’s humanoid robot strategy has had a particular influence on Xpeng. Michael Dunne of Dunne Insights said Xpeng founder He Xiaopeng sees limited profit potential in traditional car manufacturing compared with the opportunity in robotics.

The Wall Street Journal reported that He Xiaopeng and Xpeng co-president Brian Gu invested about $100 million of their own money into the company’s robotics fundraising round.

Chinese automakers have an advantage in manufacturing expertise, but the challenge will be developing the AI capabilities needed to compete with leading robotics companies.

The race extends beyond China. Companies including Agility Robotics, Apptronik, and Figure are developing humanoid robots, while Hyundai is preparing to deploy Boston Dynamics’ Atlas robot at its Georgia factory for manufacturing-related tasks.

Other automotive companies are also exploring robotics. Mobileye acquired humanoid robotics startup Mentee Robotics, while Rivian has launched its Mind Robotics effort focused on robotic systems.

As automakers search for new growth opportunities, humanoid robots are emerging as a potential extension of their manufacturing and AI capabilities.