Chinese automakers follow Tesla's humanoid robot bet
Chinese automakers including Chery, BYD, and Xpeng are heavily investing in humanoid robots, following Tesla's footsteps to find new revenue streams.
Stock photo for illustration only, not from the actual event
- Major Chinese automakers are developing humanoid robots following Tesla's strategy
- Chery's robotics unit AiMOGA prepares for IPO while BYD unveils Xiao Di robot
- Xpeng executives invest $100M of personal funds into their Iron robotics project
The hype surrounding humanoid robots is nothing new, largely thanks to Tesla CEO Elon Musk and his Optimus robot, along with viral demonstration videos from Boston Dynamics' Atlas. Behind this intense hype, however, real technological progress is taking place. The physical capabilities of robots continue to advance, and researchers now believe that the artificial intelligence techniques powering large language models can enable complex robots to learn virtually any task.
These tailwinds have encouraged a fresh wave of companies to jump into the market, lured by the promise of lucrative profits from humanoid robots. Significantly, many of the newest market entrants are major Chinese automakers looking to expand beyond traditional vehicle manufacturing.
In August 2026, AiMOGA, the robotics division of China's Chery Automobile, reportedly initiated preparations for an initial public offering (IPO). Meanwhile, BYD officially unveiled its new humanoid robot named Xiao Di. Other prominent Chinese automakers, including Changan, GAC, Li Auto, SAIC, and Seres, are also actively developing their own humanoid robot prototypes.
Stock photo for illustration only, not from the actual event
According to Michael Dunne, CEO of San Diego- and Singapore-based advisory firm Dunne Insights, Xpeng stands out as the Chinese automaker most closely monitoring and emulating Tesla's strategic initiatives. Showing unwavering confidence, Xiaopeng and Xpeng co-president Brian Gu have committed their own personal financial resources to the robotics unit. The Wall Street Journal reported that the pair invested approximately $100 million into the company's recent fundraising round.
Xpeng's primary bet is centered on Iron, a realistic human-shaped humanoid robot engineered specifically for commercial deployment. Chinese automakers like Xpeng naturally possess a distinct manufacturing edge when scaling up complex hardware production.
"Chinese automakers are following Tesla's bet that robots are the next big profit machine."
TechCrunch
Automakers branching into humanoid robotics highlights a strategic shift toward alternative revenue drivers amid shifting automotive markets. The core manufacturing expertise, supply chain dominance, and mass-production efficiency inherent to established automakers provide a crucial advantage in scaling robot production and reducing unit costs—a major hurdle that many standalone robotics startups struggle to overcome.
Of course, traditional robotics firms and automotive peers are also racing toward the same goal of large-scale commercial deployment. Agility Robotics, Apptronik, and Figure are all chasing market adoption, while Hyundai-owned Boston Dynamics is advancing its timeline. Hyundai plans to introduce the Atlas humanoid robot to its Georgia factory in 2026 and deploy them for parts sequencing tasks by 2028, supported by its new Robot Metaplant Application Center in the U.S. Automotive supplier Mobileye also acquired startup Mentee Robotics earlier this year for $900 million.
Source: TechCrunch
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