China may introduce end-user subsidies to promote the adoption of humanoid robots, according to a report by Morgan Stanley. The report suggests a shift from supply-side policies, like research funding, to demand-side measures.

The analysis, led by analyst Sheng Zhong, anticipates a push for adoption in the second half of the year that could strengthen market sentiment and identifies “downstream adoption,” citing recent large commercial orders, as the sector’s primary focus.

The report notes that increased adoption could facilitate data collection. This would enhance research and development efforts and create a “virtuous cycle” for technological advancements.

However, analysts warned that meeting delivery targets—such as AgiBot’s goal of 6,500 units and UBTech’s target of 1,100 to 1,300 units—may prove difficult.

China’s humanoid robotics industry has received substantial government support, including subsidies, tax incentives, and public-private partnerships.

Beijing’s embodied-intelligence action plan, announced earlier this year, aims to deploy 10,000 robots by 2027 and develop an industry valued at over 100 billion yuan.

The report also predicts ongoing advancements in hardware and software, along with new model launches in the latter half of 2025. Analysts noted that these developments could either support or pose challenges to the industry’s value chain.

Recent UBTech Robotics developments