XPENG Hits 20.7% Gross Margin as Overseas Sales Surge

The company’s shift toward physical AI is gaining financial traction, underlined by a record-breaking US$900 million funding round for its robotics division. This capital injection, which values the unit at over US$6.3 billion, stands as the largest single-round private financing in China’s embodied AI sector. Chairman and CEO He Xiaopeng confirmed that the firm’s IRON humanoid robot is scheduled for a full commercial launch in 2027, with production capacity expected to reach thousands of units monthly to serve retail and service markets.

Technological integration remains a core priority, as the company prepares to roll out its VLA 2.0 model update by the end of August. This upgrade bridges the gap between cockpit functionality and autonomous driving, incorporating L4-level capabilities into passenger vehicles. Development for the Robotaxi fleet is also accelerating; the platform has already completed over 2,000 internal test orders in Guangzhou, with the company aiming for driverless, passenger-carrying operations by 2027.

Global expansion is a primary driver of the company’s current growth trajectory. Overseas deliveries exceeded 20,000 units in the second quarter—an 81 percent year-over-year increase—with average selling prices topping €40,000 per vehicle. Looking ahead, the launch of the L03 SUV coupe is projected to push quarterly overseas deliveries beyond 40,000 units by the end of the year, supported by a newly formed business development team tasked with scaling Turing AI chips and autonomous technologies into international markets.