China's EV makers expand into humanoid robotics as car sales slow

Several Chinese electric vehicle makers, including Xpeng, Xiaomi, Nio and BYD, are expanding into humanoid robotics as competition intensifies and growth in the domestic car market slows. The move is being used to diversify revenue sources and strengthen perceptions that these companies are technology businesses, according to analysts cited in the report. China Association of Automobile Manufacturers data showed average profit margins in the vehicle sector were 1.5% in the first half of 2026. Xpeng said it plans to start massproducing robots by the end of this year, first for its own stores and business venues, before a broader launch in China and overseas next year. Analysts noted that Chinese automakers can reuse parts of their existing supply chains and deploy robots inside their own operations to gather data and test the technology. Despite the growing activity, commercialization outside the automakers' own businesses remains uncertain. Analysts said firms have not yet shown clear external orders or detailed revenue guidance for humanoid robots, and challenges remain in adapting car software and driving systems to robotics.