Car companies are entering the robot market. This shift follows the trend of moving from “software-defined cars” to “AI-defined cars.” Some automakers now call themselves “AI car companies.” For example, Li Auto claims to be an “artificial intelligence company,” while Xpeng positions itself as a “global AI car company.” AI technology has fully integrated into the entire lifecycle of vehicle manufacturing. It has become standard practice for car companies. Many are now accelerating their entry into the humanoid robot market, leveraging the shared advantages of intelligent driving and humanoid robot technology. According to incomplete statistics from Gaishi Auto, several leading companies, including Tesla, Xpeng, BYD, GAC Group, and Changan Auto, have ventured into the humanoid robot market. Their main motivation is the enormous market potential and clear technological advantages. Two main reasons drive car companies into the humanoid robot market. First, the market has vast prospects. Second, the technology behind intelligent driving and humanoid robots is highly related. Car companies enjoy natural advantages in technology, supply chain, and costs. Humanoid robots have a wide range of applications. They can play roles in automotive manufacturing, medical services, and the Internet of Things. For example, Xpeng’s AI humanoid robot, Iron, participated in the production training of the P7+ model at Xpeng’s Guangzhou factory last year. It will focus on applications in factories and stores. Unlike traditional industrial robots that perform fixed tasks like welding, humanoid robots can think, communicate, and act like humans. They can replace human labor in tasks such as screwing, quality inspection, handling components, and even front desk reception. They can operate year-round, effectively reducing production costs. Industry experts predict that humanoid robots may lead a new round of technological revolution and industrial transformation.
The demand for humanoid robots is strong. The market shows vast potential. A report from the Automotive Research Institute indicates that China’s humanoid robot market will reach approximately 2.2 billion yuan in 2024. By 2030, it could grow to 37 billion yuan, with an annual growth rate exceeding 60%. Sales may increase from 4,000 units to 270,000 units. Some experts even predict the market could surpass 10 trillion yuan. In this emerging trillion-dollar market, car companies hold unique advantages. Core software and hardware technologies, like AI algorithms and autonomous driving sensors, apply to both smart driving and humanoid robots. Smart driving uses these technologies in vehicles and road scenarios. Humanoid robots apply the same perception, decision-making, and execution technologies in other contexts. “Car companies aim to leverage established supply chains to empower humanoid robots and quickly reduce prices,” an analyst stated. In other words, developing humanoid robots helps car companies spread the costs of core technologies. This strategy lowers smart vehicle prices, boosts overall competitiveness, and creates a win-win situation.
Analysts at the Gai Shi Automotive Research Institute believe smart driving offers real scenarios and technical support for embodied intelligence. Embodied intelligence enhances the perception, decision-making, and environmental adaptability of smart driving systems. Together, they promote the deep integration of AI and the physical world. Moreover, vehicle manufacturers have built robust supply chains in the intelligence sector. This development effectively reduces costs in the humanoid robot field and shortens the R&D and mass production cycles. More importantly, the arrival of the AI era forces automakers to transform into AI companies. He Xiaopeng, chairman and CEO of Xpeng Motors, predicts that AI will drive significant changes in the automotive industry over the next decade. It will also lead to profound changes in global software and hardware. Under multiple pressures, automakers must enter the humanoid robot market. For automakers, developing humanoid robots may become one of their main businesses. **Seeking a “New Growth Curve”** Automakers also aim to find a “second growth curve” in the humanoid robot market. As competition in the automotive industry intensifies, profits from new car sales decline. Price wars, value battles, and technology races heat up in the automotive sector, compressing vehicle margins. According to the China Passenger Car Association, from January to November 2024, automotive industry profits fell by 7.3% year-on-year, with an industry profit margin of only 4.4%, below the average of 6.1% for downstream industrial companies. This decline mainly stems from a significant drop in average transaction prices. In 2024, the average price of new energy vehicles decreased by 18,000 yuan (2480$), a drop of 9.2%. Conventional fuel vehicles saw an average price drop of 13,000 yuan (1790$), or 6.8%. This extreme competition will continue until the automotive market stabilizes. Cui Dongshu, secretary-general of the China Passenger Car Association, points out that the explosive growth of new energy vehicles and increased production volumes will lead to a significant decline in per-unit costs.
In this situation, car companies increase exports. They also actively explore new areas like humanoid robots and flying cars to find new profit growth points. If they can seize opportunities in these new fields, they can control product pricing and achieve high premiums. Moreover, humanoid robots and flying cars share a high degree of technical similarity with vehicle manufacturing. Car companies do not start from scratch; they have some technological advantages. This could be a significant asset for them. As He Xiaopeng stated, Xiaopeng Motors will fully deploy its world model, reinforcement learning, and distillation capabilities in vehicles. They will also reuse these technologies for humanoid robots. This technology-sharing strategy allows humanoid robots to draw more knowledge and accumulate richer data based on the same intelligent driving technology, accelerating technological evolution and performance improvement.
The capital market views car companies entering the humanoid robot sector positively. UBS commented on Xpeng Motors’ move into the humanoid robot market. The company’s R&D resources spread across several projects show management’s strong commitment to AI technology. The market believes that applying AI technology will boost Xpeng’s stock price soon. If the company can become the next “Tesla” or “BYD” in this new sector, the initial investment will be worthwhile.