Chinese electric vehicle (EV) maker Xpeng has begun mass production of autonomous cabs powered by its own chips, likely to mount yet another challenge on Tesla as both companies pursue a leading position in self-driving.
Robotaxis have become the latest area where the two firms could go head-to-head, after smart EVs and humanoid robots, as the booming development of physical artificial intelligence technologies intensifies.
Guangzhou-based Xpeng said its robotaxis would have level 4 (L4) self-driving capabilities and be powered by four of its self-developed Turing AI chips.
According to SAE International, a global standards body, L4 allowed a driverless cab to navigate designated areas without requiring human intervention.
“Xpeng plans to initiate pilot robotaxi operations in the second half of this year to validate technical viability, user acceptance and the complete business model,” it said in a statement on Monday. “The company aims to achieve fully autonomous operations without [an] on-site safety officer by early 2027.”
Founded in 2014, Xpeng has long been dubbed a Tesla challenger in mainland China as it developed and assembled intelligent electric cars to take on Model 3 and Model Y vehicles.
It earned a reputation as a Chinese technology powerhouse in December after Tesla CEO Elon Musk endorsed Iron – Xpeng’s next-generation humanoid robot – on social media, predicting Chinese companies would dominate the global robotics market alongside Tesla.
Xpeng CEO He Xiaopeng said in November that the company expected sales of 1 million robots by 2030, pledging to bring down production costs so robots could be affordable to more households.
The carmaker also develops and produces flying cars under its affiliated firm Aridge, which completed a 120,000 square metre (1.3 million sq ft) manufacturing facility in Guangzhou last September.
“As Tesla is pivoting away from hardware-centric businesses, Xpeng is also accelerating its transformation into a technology firm rather than a pure manufacturer,” said Yin Ran, an angel investor in Shanghai. “It will be interesting to see Tesla and Xpeng’s robotaxis navigate the same streets in the near future.”
Xpeng said it was the first Chinese carmaker that mass-produced robotaxis through full-stack, in-house development.
At present, other Chinese carmakers – such as GAC and BAIC automotive groups – team up with autonomous driving tech firms like Pony AI to jointly develop and build self-driving cabs.
Tesla, banking on its Full Self-Driving (FSD) navigation software, showcased its Cybercab robotaxi at the China International Import Expo (CIIE) in November, marking the Asia-Pacific debut of its driverless model.
But its robotaxi business has yet to be operational on the mainland.
In January, Xpeng secured permits from authorities in Guangzhou, in China’s southern Guangdong province, to formally launch L4 public road testing. It established its robotaxi business unit two months later to oversee product development, research and testing, as well as operations.
In China, robotaxi firms like WeRide run driverless vehicles in designated areas in several cities and charge fees that can be as low as 10 per cent of the average ride.
Around 300,000 driverless taxis could be operating in China’s four top-tier cities by 2030, supported by rapid advances in AI chips and the EV sector, according to UBS.
According to an exchange filing by PT Sinar Eka Selaras Tbk on Monday, a unit of Xpeng bought a 90.1 per cent stake in one of its manufacturing units, without disclosing transaction value.
