The head of Chinese electric vehicle manufacturer Xpeng announced Wednesday that he will take direct control of the company’s robotics division as the automaker prepares for large-scale production of humanoid robots by the end of the year.
In an internal company memo obtained by Reuters, Xpeng CEO He Xiaopeng explained his decision: “The (robot) industry is becoming increasingly hot and competitive, and we have clearly seen the direction and timing of victory, but it still requires more arduous implementation and extremely high decision-making ability.”
He Xiaopeng stated that his appointment as head of the robotics division takes effect right away and comes “on the eve of mass production and commercialisation” of the company’s human-like IRON robots, which were first introduced last year.
The leadership change occurs amid reports that Shi Xiaoxin, a key executive working on the IRON robot project, departed the company earlier this month. On Wednesday, Xpeng verified that Shi had stepped down from his position as senior director of robotics product planning, though the company provided no additional information about his departure.
The electric vehicle company is shifting its focus toward what it calls “physical AI,” which includes humanoid robots, autonomous taxis, and aerial vehicles. Xpeng has established a target of beginning mass production of IRON robots before 2026 ends.
According to He Xiaopeng’s comments during a late May earnings conference call, the humanoid robots will first be tested in Xpeng’s retail locations before being sold to business clients in China and international markets starting in 2027. At that point, robotics equipment and associated artificial intelligence technology are expected to become major sources of income and profit margins for the company.
Financial results showed Xpeng’s first-quarter revenue dropped 17.6% compared to the same period last year, while net losses increased from the previous year. This marked a reversal from the company’s first-ever profitable quarter in the fourth quarter of last year.
