Chinese automakers are rapidly increasing their investments in humanoid robotics, spurred by advancements in artificial intelligence and the search for new revenue streams amid narrowing automotive profit margins.

Leading the domestic charge, Xpeng's robotics unit recently raised over $900 million at a post-money valuation exceeding $6.3 billion. Led by IDG Capital alongside Gaorong Ventures, Tencent, and Alibaba, the deal represents the largest single-round private financing recorded in China's embodied AI sector. According to reports from the Wall Street Journal, Xpeng founder He Xiaopeng and co-president Brian Gu personally contributed approximately $100 million to the round to advance their commercial humanoid robot, named Iron.

Multiple other automakers across China and globally are launching their own robotics initiatives:

• Chery Automobile: Its robotics unit, AiMOGA, is reportedly preparing for an initial public offering (IPO).
• BYD: Recently unveiled its own humanoid robot called Xiao Di.
• Other Chinese Carmakers: Changan, GAC, Li Auto, SAIC, and Seres are actively developing humanoid robots.
• Hyundai: Partnered with Google's DeepMind and plans to deploy Boston Dynamics' Atlas robot at its Georgia plant this year, targeting tasks like parts sequencing by 2028 while opening a U.S.-based Robot Metaplant Application Center.
• Mobileye and Rivian: Automotive supplier Mobileye acquired Mentee Robotics earlier this year for $900 million, while Rivian is working on robotics via its Mind Robotics spinout.

Michael Dunne, CEO of Dunne Insights, noted that Chinese automakers possess the necessary hardware and manufacturing capabilities to scale production, with the main challenge centering on whether they can match competitors like Tesla on the artificial intelligence side of development.