Chinese EV makers ramp up robotics as US tech rivalry grows

Chinese EV makers including Xpeng and Chery are ramping up robotics projects as competition with US tech firms intensifies.

Xpeng, based in Guangzhou, said it plans to start mass production of its humanoid robot Iron by the end of 2026, after the robot received praise from Tesla CEO Elon Musk.

Iron, now in its seventh generation, uses a proprietary AI model that relies mainly on visual data for decision-making.

Chery, a state-owned automaker in Anhui province, has worked with AI company Aimoga since early 2024 to develop the Mornine humanoid robot, focused on interpreting human language and intent.

Other Chinese carmakers, including Nio, BYD, GAC Group, and Seres, are also investing in robotics, motivated by the potential crossover between autonomous vehicle and robotics technologies.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Humanoid factory data remains scarce despite mass production claims

Xpeng targets end-2026 mass production of Iron, and UBTECH (a Chinese humanoid-robot maker) says it began mass production after $112 million in orders 1.
Shanghai’s robot school (a dedicated training and testing site) trained 102 humanoids for 10 companies 2. A gap remains between marketing and real deployments. Missing pilot results, unit economics, or pricing data blur cost comparisons with traditional automation. China had 392 robots per 10,000 manufacturing workers in 2023 3. Most are traditional industrial units, not humanoids 3. Many models have weaker algorithms and higher failure rates, so they focus on low-precision manufacturing 3.

Subsidy mapping opens near-term opportunities for automation vendors

Shenzhen budgeted 4.5 billion yuan ($630 million) in 2025 for AI and robotics, with computing-power vouchers (government credits to offset cloud or hardware compute costs) covering up to 60%, capped at 10 million yuan 4. Guangdong planned $135 billion for industrial upgrading that includes robotics 5.
Systems integrators (firms that assemble hardware plus software into production-ready lines) and simulation software providers (makers of digital-twin plus virtual testing tools) can map provinces with the highest subsidy rates plus fastest approvals to sharpen focus. Plants in high-subsidy regions try new automation when government funding covers most costs. Safety plus compliance service providers (firms that train workers while helping factories meet national plus provincial robot-safety standards) can tackle the shortage of skilled staff needed to operate or maintain robots and help manufacturers qualify for provincial subsidies 3.