[CNMO Tech News] Recently, XPeng Auto completed a controlling acquisition of EIDO, an electric vehicle manufacturing entity under Indonesia's Eraya Group, holding a 90.1% stake. According to disclosure documents from the Indonesia Stock Exchange, this marks a key breakthrough for XPeng in achieving local production in Southeast Asia's largest automotive market.
It is reported that this acquisition deepens the cooperation between the two parties. As early as July 2025, XPeng established its first overseas production base relying on the EIDO factory, with the first vehicle off the line being the XPeng X9, with a monthly capacity of about 800 units at that time. By acquiring controlling equity, XPeng will fully master the production leadership of the base, paving the way for subsequent expansion and the introduction of more models.
Domestically, XPeng has built three major production bases in Guangzhou, Zhaoqing, and Wuhan, with a total capacity of about 420,000 units; after the second phase of the Guangzhou factory is put into operation, 300,000 additional annual capacity will be added. The overseas layout is being promoted using an "asset-light contract manufacturing" model: Cooperation with Magna in Austria has already started in 2025; Cooperation with Handal Indonesia Motor in Indonesia started in March of the same year; Cooperation with EPMB Group in Malaysia is expected to start mass production in 2026.
According to the plan, XPeng will further expand its overseas manufacturing capabilities in Europe, Southeast Asia, and Latin America starting from 2026. This controlling stake in Indonesia's EIDO is an important milestone for the implementation of its global production strategy.

Let's talk about XPeng today.
On May 28, XPeng also released its Q1 financial report.
Let's get straight to the main point.
XPeng's Q1 delivery volume was62,683 units.

By comparison, NIO was 83,465 units, Li Auto was 95,142.
Whether compared to itself or against NIO and XPeng, this is not a good result.
Because in Q1, neither NIO nor Li Auto had new cars or revised models to fill the gap, relying purely on existing product matrices.
XPeng is different, XPeng launched many revised models:
In January, one-time launch of 4 main models: 2026 Model P7+, 2026 Model G7, 2026 Model G6 Pure Electric Version, 2026 Model G9 Pure Electric Version.
In March, X9 Pure Electric Version, G6 Super Extended Range Version, P7 New Model Launched.
Six models completed new launches and revisions in Q1.
It was an aggressive product rollout strategy.
But even so, sales were average.
Until April, 2026 Model MONA M03 launched for delivery, sales rose again.
XPeng's explanation is: Q1 was affected by fluctuations in the domestic new energy market, the company not only focuses on scale, but more on the balance between sales and operational quality.

XPeng's Q1 gross margin was 12.1%, by comparison, the same period in 2025 was 10.5%, and the fourth quarter of 2025 was 13.0%.
Regarding automotive gross margin, Li Auto Chairman Li Xiang has a viewpoint: Product stable gross margin should be stable at 15%-25%, longest will not be lower than 15% gross margin.
Although Li AutoQ1did not do well either, vehicle gross margin was only 6.1%.
But for now, XPeng's vehicle gross margin is not high, also related to its low sales, scale effect cannot be utilized.
So, the blood-making ability provided by the main business of automotive sales is relatively limited.
However, XPeng's Q1 gross margin was 20.6%, by comparison, the same period in 2025 was 15.6%, and the fourth quarter of 2025 was 21.3%.
This is because XPeng's service and other businesses (R&D technical services, software licensing) gross margin is very high, reaching 66.5%.
Although revenue was only 2.03 billion yuan, far less than car sales 11.0 billion yuan, but it still pulled up the overall gross margin.

Last year Q4, XPeng achieved single quarter profitability (net profit exceeded 380 million yuan), but regretfully not maintained.
This year Q1, XPeng net loss was 1.78 billion yuan ($260 million), by comparison, the same period in 2025 was loss 660 million yuan, and the fourth quarter of 2025 was revenue 380 million yuan.
Operating loss was 1.87 billion yuan ($270 million), by comparison, the same period in 2025 was 1.04 billion yuan, and the fourth quarter of 2025 was 40 million yuan.
Q1 R&D expense was 2.91 billion yuan ($420 million), compared to the same period in 2025's 1.98 billion yuan increased by 46.8%, and compared to the fourth quarter of 2025's 2.87 billion yuan increased by 1.1%.
Yearly increase mainly due to company expanding product portfolio to support future growth, new models and AI related technology development corresponding expenses increased.
Q1 Selling, general and administrative expense was 1.88 billion yuan ($270 million), compared to the same period in 2025's 1.95 billion yuan decreased 3.2%, and compared to the fourth quarter of 2025's 2.79 billion yuan decreased 32.5%. Yearly and quarterly decrease mainly due to commission paid to franchise stores decreased.
As for cash reserves, still 42.09 billion yuan, ammunition sufficient.
However, from Q2, XPeng's situation will start to slowly improve.
Reason is, there are new hit models supplementing: XPeng M03 and XPeng GX.
First is April 2026 Model M03 launched, live up to expectations, still stable maintain hit performance, 37 minutes confirmed orders broke 10,000, April retail 13,595 units, brought new sales increment.
Besides this car, XPeng full-size high-end flagship XPeng GX launched on May 20, limited time right price269,800-349,800 yuan(Pure Electric + Extended Range total 8 configurations).
Already definitely a big hit, especially top-spec models, already hot to a mess:

Especially XPeng GX Pure Electric Version, on May 23 delivery cycle was 20-24 weeks, now already changed to 30-34 weeks.
Known so far is: In initial orders flagship version proportion exceeded 80%, currently still mainstay. Max version proportion below 5%, below expectations.
Extended range version initially demand not as good as pure electric, but gradually approaching, especially after strengthened marketing in North District, West District.
We hope GX can become top 3 or even head of high-end big 6-seat market above 300,000 yuan.
GX as flagship model, gross margin is very good, most SKU gross margin performance all higher than expectations.
So, with this car's mass delivery, this year June, or even next, this car will contribute considerable sales revenue, and also will drive XPeng vehicle gross margin improvement.

However, must say although has XPeng GX high gross margin model improving product structure, but raw material rise pressure (memory chips and batteries), this part pressure will still continue to subsequent quarters.
Q2 XPeng expected delivery volume 100,000 to 106,000 units, compared to Q1 increased about 59.54% to 69.11%.
Total revenue will be 19.6 billion yuan to 20.8 billion yuan, compared to Q1 increased about 50.38% to 59.59%.
As for total gross margin, expected to be roughly flat with first quarter.
In view of XPeng new high-end flagship XPeng GX opened a good start.
Next, XPeng performance very worth expecting.
First is new models.
This year second half XPeng still has three new models will launch for delivery.
XPeng G9L: XPeng G9 Long Version.
G9L positioning will be between G9 and GX, mid-large 6-seat luxury household SUV.
XPeng G9: 4891×1937×1670mm, wheelbase 2998mm
XPeng G9L: 5120×1999×1782/1788/1795
XPeng GX: 5265×1999×1800mm, wheelbase 3115mm,
XPeng G9L on G9 basis made lengthened, same pure electric/extended range dual power, as for other aspect configurations, personal feel will align with GX, common name cookie-cutter.

So, this car's configuration, space and many product competitiveness certainly not bad.
Now new energy cars want to win in intense competition, core is《Tech Jungle》many times emphasized strategy: Dimensional Strike + Differentiated Competition.
This is also now new energy cars getting bigger reason.
So, G9L subsequent should replace G9 position, so most critical is pricing, XPeng G9 price is 248,800-278,800 yuan.
G9L wants to move volume, pricing and SKU need to seriously consider.
If set well, then another hit booked.
Besides G9L, XPeng MONA sequence SUV models also finally coming, will fill XPeng missing in 150,000 yuan SUV models.
MONA L03:
L03 positioning compact coupé SUV,4650 /1920/1600mm, wheelbase 2850mm(Axle Length Class-Leading), same pure electric + extended range dual energy, 83kW (249 hp) permanent magnet synchronous single motor.

Pure electric version provide 505km (56kWh), 650km (69kWh) two range specifications.
Extended range version 37.2kWh Lithium Iron Phosphate;CLTC Pure Electric Range 257km, Combined Range > 1000km.
If can give a good price, then basically can continue current M03 hit momentum.
As for launch release time, user in XPeng Auto VP Yu Tao comment section asked July can receive car, his response is: No problem, place order at night no pressure.
So L03 high probability July will launch.
L05: 5-seat mid-size household SUV
In some sense can see as one size bigger L03.

L05 Length×Width×Height: 4870/1930/1636mm, wheelbase 2940mm.
Compare XPeng brand G6.
XPeng G6: 4758/1920/1650mm, wheelbase 2890mm.
So, L05 whether seating or cargo performance, will be better than G6.
G6 selling price is 176,800-186,800 yuan.
Considering MONA series more affordable positioning, L05 must be cheaper than G6, and will also eat into considerable G6 market share.
(If appear pricing reversal, then I definitely this car last sales definitely fail)
For MONA these two SUVs, I still very expect.
However still that sentence, whether G9L, L03 or L05, final decide whether can big sell core factor still pricing, configuration, XPeng must treat cautiously.
If this block no mistakes, then second half XPeng sales performance very worth expecting.
XPeng second generation VLA progress still very worth expecting.
First technical aspect, second generation VLA brought two new capabilities:
1、Second generation VLA No Navigation Campus / Underground Garage Roam, achieve intelligent driving from With Road to Even without Road
2、Domestic First Full Scene Stationary Start (Public Roads, Campus, Underground Garage, P Gear status can stationary start), everywhere can drive, greatly increase intelligent driving usage rate
These two function's carry not only intelligent driving function's supplement, means XPeng will Full Scene 0 Speed Start, No Navigation Roam Pass, Urban NOA, Highway NOA, Spot to Spot link thoroughly connect, form a complete seamless end-to-end experience loop.
Achieve intelligent driving from With Road to Even without Road, and will bring intelligent driving experience continuity quality change, truly do everywhere can drive.
This capability form already and Tesla in North America realized Full Scene FSD very close.

And, second generation VLA push first month, intelligent driving mileage proportion industry first break 50%, become industry first cross this node intelligent driving system, mark high-level intelligent driving from Geek Tasting formally enter Mass Daily, High Frequency Usage stage.
Regarding intelligent driving mileage, domestic intelligent driving head company Horizon Robotics Founder&CEO Yu Kai has a viewpoint: Intelligent driving mileage proportion break 50% after, user to intelligent driving reliance will become irreversible.
So, with more large amount model's delivery and more intelligent driving mileage usage, XPeng intelligent driving will receive not small progress and growth.
This is not over yet.
This year Q3 (August), XPeng VLA will迎来 a wave of update, greatlyimprove model capability upper limit, smarter, generalization capability stronger, greatly reduce takeover rate.
This year end, XPeng will achieve first realizeVLA+VLM Fusion, besides autonomous driving haveLanguage Communication Capability, for future Car Butler (L5 level) capability lay foundation.
When autonomous driving can based on L2 level hardware realize perfect L4 software capability, entire business form and business model will produce huge change.
Can expect is, XPeng in intelligent driving aspect competitive capability will get further enhanced, and this reversely will promote XPeng product sales growth, form a positive cycle.

As for Robotaxi, currently XPeng is in Guangzhou get license and operate.
XPeng's planning is in Guangzhou take technology, product, business model run through after, then with domestic and foreign more partners carry out local operations.
XPeng's Robotaxi strategy has two points: First, only do product and take commission, not directly do operations, so will have many partners; Second, XPeng thinks global Robotaxi has huge business value.
He Xiaopeng indicates: Domestic recent autonomous driving regulation tightening did not affect our rhythm, we think 2028 after will be Robotaxi huge business opportunity, currently according to steps in sea inside out preparation.
XPeng current plan is use existing models in domestic and international market heavily deploy and test V2.0.

Using current models carry out rapid research and development and experiment, and will in 2027 launch economy models to do well Robotaxi demonstration and commercial verification, Robotaxi commercial capability will continuously improve.
Regarding Robotaxi test and R&D to Consumer Side business also bring positive impact (feedback), because V2.0 can derive multiple intelligent driving strategies (such as speed mode, less takeover mode).
Future, when policy gradually relax, Robotaxi enter scaled commercial operation, it may with Consumer Side market gradually separate, become second vehicle track, become a new type tool.
As for technology licensing service, this year Q2 start, XPeng already start to partners Volkswagen massively deliver Turing chips, 2026 from technology, service and IP licensing total revenue will be same as 2025.
Overseas market has always been XPeng core strategy one.
From latest month data look, XPeng International business revenue contribution already close to 20% (last year whole year about 10%), proportion significantly improve.
Although have tariff etc cost pressure, but international business brought gross margin and net profit contribution still very substantial.
This year second half, with this year second half 4 models global launched, 2027-2028 XPeng globalization speed will greatly improve, growth momentum will continue, whole year international revenue contribution will stable at 20% around.
Of course consider international instability, XPeng also increase local investment production (such as in Austria with Magna cooperation), to ensure have capability meet European and global market growth expectation.

Currently we in Southeast Asia (Indonesia, Malaysia) have two factories, mainly meet local market; in Austria with Magna cooperation production supply Europe. These three places capacity this year will improve, and produce new models. For Southeast Asian countries, production mainly face local market; Austria factory then serve Europe. Expect wein Europe sell most vehicles will realize local production. In no production facilities other regions, we will maintain current export mode. With in some large markets sales and share growth, we are actively seek improve capacity and localization rate method, to meet local content rules.
He Xiaopeng for overseas market expectation is: Hope future 5 years, overseas market sales account for half, revenue and profitexceed half.
Finally, come to summarize.
Although XPeng Q1 performance flat, but still that sentence, look car company how to look not only past, but also look long-term potential.
Now, with GX, G9L and MONA sequence new cars successively debut, XPeng already laid out strongest product matrix.
Additionally, VLA intelligent driving enter mass popularization stage, overseas business also slowly grow into new business growth pole.
XPeng already preliminarily form Hit Models + Intelligentization + Globalization three-wheel drive new layout.

Next half year, dense new car release will be test this layout quality touchstone.
For XPeng, next question is: How to use well technology this sharp blade, in wider global market, win matching business results (that is scale and profit)?
Second half, market will use orders and margin to vote, await XPeng reverse situation.
End.

Author | Guo Yue
Editor | Zhihao
He Xiaopeng: Not only looking at scale but also long-term development, three new cars queued up in the second half of the year, welcoming the strongest sales growth.
CarDaily reported on May 28. Just now, Xpeng Group Chairman and CEO He Xiaopeng spent most of the time on the first-quarter earnings conference call responding to Xpeng's business layout in intelligent cars, Robotaxi, humanoid robots, and other aspects.
Regarding new cars, three new cars will be released globally in the second half of this year, and Xpeng will welcome the strongest sales growth curve in history.
Regarding overseas business, in April this year, Xpeng's overseas sales volume broke through 6,000 units for the first time, with a goal to continue exceeding 10,000 units per month in the fourth quarter. Starting from the second quarter, the revenue contribution from international business is expected to exceed 20%.
Regarding Robotaxi, the Xpeng GX fleet has already started small-scale L4 testing. Xpeng's goal is to start Robotaxi demonstration operation services in Guangzhou in the third quarter of this year. After the second-generation VLA lands overseas, Xpeng will also actively explore deploying affordable Robotaxis in both domestic and overseas markets.
Regarding humanoid robots, the software and hardware R&D progress of Xpeng's new generation IRON humanoid robots for mass production version is proceeding smoothly, planned to debut officially in the third quarter of this year. Xpeng aims to achieve mass production of high-end humanoid robots by the end of this year, first trial commercialized in Xpeng stores, and delivered to Chinese and overseas commercial customers starting next year.
Starting next year, humanoid robot hardware revenue and AI model revenue will become one of the important drivers of Xpeng Group's revenue and gross profit growth.
Just today, Xpeng Group released the Q1 2026 financial report.

▲ Xpeng Q1 2026 Financial Data
Specifically, Xpeng's Q1 2026 delivery volume reached 62,700 units, a year-on-year decline of 33%, total revenue of 13.03 billion Yuan, a year-on-year decline of 17.6%; gross margin improved year-on-year by 5 percentage points to 20.6%, net loss increased to 1.78 billion Yuan. These performances are partly due to the continued increase in R&D investment. In the first quarter of this year, its R&D expenses were 2.91 billion Yuan, a year-on-year increase of 46.8%, and further increased compared to the 2.87 billion Yuan in the fourth quarter of last year.
Regarding Q1 performance, He Xiaopeng stated that Xpeng did not just focus on scale when the market challenge was downward, but focused more on the balance between sales volume and operating quality and long-term development. He is very confident that the sales volume of every quarter in the rest of this year will grow significantly quarter-on-quarter.
As of the time of reporting, Xpeng Group's US stock price was reported at $16.845 (approximately 114.2 RMB) / share, up 2.4%, with a market cap of $16.124 billion (approximately 109.3 billion RMB).

▲ Xpeng Group US Stock Price as of Publication Time
01.
He Xiaopeng 11 Questions Show Determination:
New Cars, Robotaxi, and Robots Will All Be Globalized Well
On the Xpeng Group earnings conference call held tonight, Xpeng Group Chairman and CEO He Xiaopeng and Executive Vice Chairman and Co-President Brian Gu provided detailed responses on the key focus and planning for future development.

▲ Xpeng Group Chairman and CEO He Xiaopeng (right in picture), Executive Vice Chairman and Co-President Brian Gu (left in picture)
Below is the main content of this conference call, edited by CarDaily without changing the original meaning:
Q1: After the new model GX was on the market for a week, the response was enthusiastic. What is the current total order volume? What is the single-unit gross margin level? What is the expectation for its monthly sales target?
He Xiaopeng: As of now, the order performance of GX has exceeded our expectations, and the situation is very good. We observed some interesting data: First, the waiting time for the pure electric flagship model has exceeded 30 weeks, and orders for the flagship version are still growing rapidly.

▲ Xpeng GX
From the order structure, in the early stage of GX launch, the flagship version accounted for more than 80% of the share, and it is still the model with the highest sales proportion. At the same time, the sales proportion of GX's Max version is less than 5%, lower than our initial expectations.
In terms of powertrain type, the initial order volume of the extended-range version was lower than the pure electric version, but it is now gradually moving closer to the pure electric version, especially after we strengthened marketing in areas where we were originally not good at marketing, such as the north and west, this trend is more obvious.
For GX, our primary task is to push for capacity ramp-up to the fullest extent, while adhering to providing high-quality service and quality, ensuring GX can achieve long-term stable delivery. I am most concerned about the sustained performance of GX.
As a flagship model of Xpeng, GX's gross margin is very good. Previously, when I communicated with the media, I mentioned that if there is only one SKU, the gross margin may not meet expectations; but in reality, GX's gross margin is better than our overall gross margin level.
I also want to add a point: Starting from this year, all new cars of Xpeng will focus on two new priorities. First, how to pursue commercial quality in commercial configuration and commercial pricing. Second, we do not pursue an initial sales surge followed by a decline, but pursue a more stable sales performance.
To this end, we have established a new system in supply chain management, modularization, ramp-up processes, and supply chain security.
I believe that starting from GX, we will be able to better balance business benefits and scale, achieving more stable long-term sales.
Q2: What are the plans for Robotaxi business operations domestically and going global? Has the recent tightening of domestic regulations affected business progress? How do you view the potential impact of B-side business on Xpeng's C-side passenger vehicle sales?
He Xiaopeng: We noticed the recent tightening of domestic regulations on autonomous driving, but this has not affected our overall pace.
From my perspective, the real business opportunity for Robotaxi will arrive in 2028. Currently, Xpeng is trying to run through this model both domestically and globally, landing and implementing the VLA 2.0 system in China and overseas.
In China, we will conduct rapid R&D and testing through existing models and plan to launch an economy vehicle for Robotaxi scenarios in 2027.
Regarding the business model, I want to emphasize two points: First, we only provide products and offer a commission model, not participating in operations directly, so we will have a large number of partners. Second, the main battlefield for Robotaxi is the global market, and I believe the global market has huge business value.
Regarding your concern about the impact of B-side Robotaxi on C-side sales, I want to add a few points of view.
First, Robotaxi testing at the current stage is actually having a positive impact on the C-side, because the future VLA system will provide various different intelligent assisted driving strategies.
Secondly, as policies and regulations gradually relax and commercial operation gradually lands, Robotaxi vehicles will gradually separate from C-side vehicles, forming a second independent vehicle track, becoming a new type of transportation tool.
Q3: In the second half of this year to about a year in the future, what important trends and changes will the VLA 2.0 OTA bring?
He Xiaopeng: I think that within this year, Xpeng's VLA capabilities will experience two important nodes.

▲ Xpeng VLA 2.0 Push First Month Assisted Driving Mileage Proportion Breaks 50%
The first node may appear in the third quarter of this year.
In the past period, Xpeng VLA mainly focused on engineering, safety, and basic customer experience, without focusing on improving performance upper limits. In the third quarter of this year, we will greatly improve the performance upper limit of VLA. The user experience will manifest as vehicles being smarter, having stronger generalization capabilities, and greatly reducing the disengagement rate.
The second node is the end of this year.
We hope to fuse VLA and VLM capabilities through organizational mergers. At that time, vehicles will not only have the "driver ability" of autonomous driving but also possess language communication capabilities, and even lay the foundation for future "car butler" capabilities.
We believe this will be the preliminary form of L5 level capabilities. We hope to gradually achieve this goal.
Q4: What differentiation advantages does the humanoid robot have in hardware costs in the next year? What is the business model overseas?
He Xiaopeng: The mass production version of IRON is designed according to automotive-grade safety and reliability. Recently, we have completed the development of self-developed dexterous hands. Flexibility has significantly improved, while costs have significantly decreased.
In the process of robot mass production, we encountered many challenges different from car mass production. For example, the hardware of current humanoid robots does not fully consider safety, reliability, stability, and maintainability—it does not follow automotive-grade standards.

▲ Xpeng Plans to Mass Produce Humanoid Robots by the End of 2026
In addition, many energy groups have not considered how to scale, how to solve supply chain yield rate and quality issues, nor have they considered whether the underlying architecture of hardware and software should be placed locally or in the cloud, and if placed in the cloud, how to solve a series of issues such as data privacy, traffic, computing power, latency, etc.
For this reason, we have become a robot company that almost self-develops core hardware and software in full-stack (except for battery cells) since the beginning of last year. This enables us to achieve high integration.
I believe the initial hardware cost structure of robots will be close to a car, but in the long run, we will gradually obtain more economical scale solutions. But today, the robot's cost structure is very close to a car.
Regarding overseas markets, just like our car business, our robots have considered globalization from the first product.
The sales logic of robots may be more adaptable globally than in China, and acceptance among grassroots employees overseas is higher.
We have done a lot of work on how hardware meets overseas policies and how software and data meet local regulations.
For example, Xpeng's current VLA data processing volume is about 200 million Tokens per hour. If the robot model is placed in the cloud, it is estimated that 500 million to 1 billion Tokens per hour will be required, and traffic costs may exceed 100GB. Therefore, completely relying on cloud computing power is not feasible.
We comprehensively considered overseas hardware, software, data privacy, comprehensive usage costs, and commercial logic from the beginning. As domestic business advances, we hope to see new changes in robot business overseas next year as well.
Q5: Besides Guangzhou, can you reveal the Robotaxi city expansion plan and timeline as well as progress in applying for the corresponding license?
He Xiaopeng: Currently, our Robotaxi business only considers Guangzhou. We have already obtained the Guangzhou testing operation license and hope to run through the complete technology, product, and business model in Guangzhou first.
Afterwards, we will find more partners domestically and overseas for them to operate locally.
Since announcing this plan, we have received a large number of requests from overseas and some domestic partners. They are very interested in observing our overall progress in the next year.
After we launch economy vehicles suitable for Robotaxi scenarios and better overall solutions in 2027, I believe everyone will see our continuous improvement in Robotaxi commercialization capabilities.

▲ Xpeng Will Launch Three Robotaxis in 2026
Q6: What are the guidance for vehicle gross margin and company overall gross margin in the second quarter?
Brian Gu: Our overall gross margin in the first quarter is very close to the fourth quarter of last year. We indeed observed a trend of rising raw material costs, some of which have been reflected in the first quarter. We expect these cost factors to continue in subsequent quarters of this year.
In the second quarter, we launched the full-size SUV GX, and delivery will start in subsequent quarters. GX's gross margin is at the highest level in our entire product portfolio.
From the product structure perspective, we expect to see better model combinations in the second quarter and the second half of the year. Comprehensive factors, we expect the company's total gross margin in the second quarter to maintain a level roughly similar to the first quarter.
Q7: Can you talk about the growth catalysts for the overseas market, as well as sales and profit contributions in the next three years? Also, which model's profit is better, export or local production?
He Xiaopeng: The overseas market is one of the most important strategic directions for Xpeng. I hope that in the next five years, the sales volume of the overseas market will account for half of our total sales volume. At that time, the revenue and profit contribution from overseas will exceed domestic.
I am very confident that as Xpeng launches multiple global models in the second half of this year, Xpeng's globalization speed will be significantly improved in the next two years.
Whether in hardware, AI software, channels, services, or supercharging capabilities, we will make huge investments overseas, and overseas profit performance will also be very good.
Our R&D investment in cars this year is mainly concentrated in the overseas market. Therefore, I am very confident about achieving accelerated growth in the overseas market in the next three years.
Brian Gu: I will add a few points. First, from the latest international sales figures, overseas sales volume has accounted for nearly 20% of our total sales volume. And last year, international sales volume accounted for about 10% of the global total sales volume.
Second point, even when facing some tariff issues and cost increases this year, the single-vehicle profit of our international business is still significantly better. The contribution of international business to our profit is very considerable.
We expect this growth momentum to last throughout the year. I believe maintaining the proportion of overseas sales volume at around 20% throughout the year is sustainable. Of course, the Chinese market itself is also expected to have significant growth.
Regarding going global, we are increasing overseas localization investments. The overseas market will make an important contribution to the company's overall momentum and profitability.
Q8: In this year and next year, what proportion of models is expected to be produced in local factories? Will this proportion differ across different regions?
Brian Gu: Currently, we have two factories in Southeast Asia, located in Indonesia and Malaysia, mainly serving the local markets. In addition, we cooperate with Magna in Austria to produce vehicles for the European market.
These three manufacturing bases will increase capacity this year, and there will be new models produced in those local markets.
For Southeast Asian countries, localized production mainly satisfies local market demands; while the Austria factory serves the European market.
I expect most of our European sales will come from localized production. In other regions where manufacturing facilities have not been established, we will continue to maintain the current business model.
As we improve sales and market share in these large markets, we are actively exploring ways to increase localized production capabilities to meet localization content rules and gradually move towards a deeper localized production model.
Q9: Can you give a few specific examples to explain the commercial functions and application scenarios of Xpeng robots in its own stores and customer stores? What is the price strategy for sales to the outside? Since its cost structure is close to a car, can the sales strategy also be analogous to cars?
He Xiaopeng: Our robots are different from most robots. We hope it is used in an environment interacting with humans. Therefore, we first consider commercial environments, and the initial application scenarios are tour guide, sales guide.

▲ Xpeng New Generation IRON Service Scenario
Whether in China or overseas, robots can introduce products in stores, for example, introducing vehicles in our stores. Although the final transaction may still need to be handled by humans, company introduction, product introduction, performance explanation, and other work can be assisted by robots.
Based on the fact that tour guiding and sales guiding have been verified in a large number of jobs globally, we hope to expand to deeper scenarios of sales retail, such as cashier positions. The number of cashier and retail sales positions is very large globally.
Therefore, from the commercialization path perspective, Xpeng will focus on deepening from the sales guide perspective, while we will open up a lot of cooperation.
If our partners have different job requirements, they can generate data with us, perform pre-training and post-training, and thus generate different models. These models can be placed on our external cooperation platform for users to download and activate.
Regarding future commercialization pricing, we are still discussing. But it can be seen that our robots are very similar to cars, so their sales price will certainly be more expensive than an ordinary car.
There will be good gross margins on hardware in the early stage. At the same time, our robots also have a large amount of data processing in the cloud, so we hope to take a faster step in software charging.
We believe that break-even targets can be achieved within a few months in the overseas market, while it may take slightly longer in the domestic market.
Therefore, we are constantly thinking about the commercial logic of robots from the perspective of how customers use them, why they buy them, and how they get value.
Q10: Can you share your thoughts on the evolution of the group's long-term business model? How do you view the timing of revenue generation from various strategic sectors, as well as changes in the medium-to-long-term revenue structure?
He Xiaopeng: At the current stage, the group's main revenue source is certainly scale effects, mainly from hardware; if looking at the ecosystem, it is system effects.
But looking globally, very few car manufacturers can build a software platform on top of the scale effect of hardware to form the next level of network effects - that is, achieve software charging and multi-sided network effects.
Further back, with the rise of overall intelligent AI capabilities, there will also be ant colony effects. Just like ant colonies, forming new synergy between centralized and decentralized.
These three effects will gradually overlap. Each effect involves different competitive barriers and corresponds to different business logic.
Q11: How is the service revenue trend this year? Is there a possibility for technical licensing or technical services with our partners to expand overseas?
Brian Gu: We continue to maintain the previous guidance: In 2026, the total revenue from technology, services, and IP licensing will be roughly the same as in 2025.
Starting from the second quarter of this year, we will scale up delivery of Turing Chips to partners.

▲ Xpeng Turing Chip Obtained Volkswagen Confirmation
We continue to believe that achieving technology commercialization and monetization through such cooperation is a very attractive business model for us.
Given that Xpeng internally possesses a large amount of proprietary technology, we hold a very open attitude towards expanding such technology commercialization opportunities.
02.
Gross Margin Growth Highlights Operating Resilience
Expected Delivery Volume and Revenue to Increase Significantly in Second Quarter
From the Q1 2026 financial report of Xpeng Group, the total revenue of Xpeng Group in Q1 2026 was 13.03 billion Yuan, down 17.6% compared to Q1 2025, and down 41.4% compared to Q4 2025.

▲ Xpeng Q1 2026 Financial Data
Among them, Xpeng's automotive sales revenue in Q1 2026 was 11.0 billion Yuan, down 23.5% compared to the same period of Q1 2025, and down 42.3% compared to Q4 2025.
Regarding net loss, its net loss in Q1 2026 was 1.78 billion Yuan. In Q1 2025, this figure was 660 million Yuan. Net profit in Q4 2025 was 380 million Yuan.
Regarding gross margin, Xpeng Group's gross margin in Q1 2026 was 20.6%, exceeding Li Auto (7.9%) and NIO (19.0%), with automotive gross margin at 12.1%. In comparison, it was 10.5% in the same period of Q1 2025, and 13.0% in Q4 2025.

▲ Xpeng Q1 2026 Gross Margin Steady
As of Q1 2026, Xpeng's cash on hand was 42.09 billion Yuan.
For the second quarter of this year, Xpeng Group expects delivery and revenue scale to achieve significant increases.

▲ Xpeng Q2 2026 Performance Guidance
Regarding delivery volume, the official forecast expects vehicle deliveries for the quarter to reach 100,000-106,000 units, with a year-on-year change of approximately -3.08% to 2.73%, and a quarter-on-quarter growth of approximately 59.54% to 69.11%.
Regarding revenue, the official forecast expects total revenue for the quarter to be 19.6 billion to 20.8 billion Yuan, with a year-on-year increase of 7.25% to 13.82%, and a quarter-on-quarter increase of 50.38% to 59.59%.
Brian Gu stated: "We will accelerate the large-scale commercialization of Physical AI applications with company-level strategic priority."
03.
Conclusion: Xpeng Accelerates Towards the End Game of Physical AI
From the information disclosed in the Q1 2026 financial report and conference call, Xpeng is on the eve of Physical AI applications moving from mass production landing to explosive scale growth.
Its Physical AI layout is welcoming a historic breakthrough in commercialization mass production: The proportion of second-generation VLA smart driving mileage broke through 50%, the first full-stack self-developed Robotaxi has rolled off the production line, the humanoid robot goal is to mass produce by the end of the year, flying cars are entering the eve of mass production. Multiple business lines are simultaneously approaching explosive scale growth, jointly building a solid foundation for Xpeng to move towards the era of Physical AI.
Under this circumstance, Xpeng Group's gross margin still maintained at a high level of 20.6%, showing strong operating resilience. From the obvious rebound in delivery guidance in the second quarter, Xpeng is expected to welcome strong sales growth.
With VLA architecture iteration, the successive landing of multiple new cars and robot products, Xpeng is expected to build a more complete business ecosystem in the fields of intelligent mobility and embodied intelligence. Its future development potential is worth continuous observation.

Author | Guo Yue
Editor | Zhi Hao
XPeng's global expansion layout takes another key step.
Che Dongxi reported on May 22: Documents from the Indonesia Stock Exchange revealed that XPeng Group completed the acquisition of 90.1% equity in PT Era Industri Otomotif (EIDO), the core EV manufacturing entity under Indonesia's listed company PT Sinar Eka Selaras Tbk (Erajaya Active Lifestyle, ERAL), marking a new stage in XPeng Group's Southeast Asian market layout.

▲ XPeng Acquires Indonesian Car Factory Equity
The transaction officially took effect on May 13, involving 154,072 shares. Upon completion, XPeng Motors became the controlling shareholder of EIDO, holding 90.1% of the shares, while the original shareholder Erajaya Active Lifestyle (ERAL) retained the remaining 9.9%.

To this, ERAL Company Secretary Badar Teguh Mancik Alam stated that the change in company ownership has no substantial impact on financial status and daily operations.
The core asset of this equity transaction is EIDO's manufacturing business, namely the manufacturing factory located in Prakata, West Java Province, Indonesia, focusing on electric vehicle production and assembly.

▲ XPeng Model Production Workshop
This factory is XPeng Motors' first overseas production base, adopting the Completely Knocked Down (CKD) mode. As early as March 2025, after XPeng Group entered the Indonesian market, this factory began contract manufacturing for XPeng. The first XPeng model to roll off the production line was the XPeng X9.

▲ XPeng X9
After this acquisition, XPeng's distribution, retail, and after-sales services in Indonesia continue to be operated by two other subsidiaries under ERAL — PT Era Inovasi Otomotif (EIVO) and PT Era Dealer Otomotif (EDOO).
Overall, through this acquisition, XPeng further strengthens its dominance in the manufacturing sector of the Indonesian market.

"Xpeng GX sales data is at least exceeding my expectations, perhaps the product matrix head's expectations might be even higher." On May 21, He Xiaopeng, Chairman and CEO of Xpeng Group, stated that Xpeng GX large orders reached 24,863 units in 12 hours since launch, with two purchased by himself.
On May 20, Xpeng Auto's first all-size new tech flagship SUV — Xpeng GX went heavy launch. The new car is positioned as a new tech flagship facing the physical AI era, launching pure electric and super extended range dual power systems, limited-time equity price starting from 269,800 yuan.
He Xiaopeng stated: "Regarding the pricing of GX, we went through multiple rounds of fierce discussions, and ultimately gave a very sincere price based on ensuring a certain profit." Xpeng Group Product Matrix General Manager Wu Anfei revealed: "From a product power perspective, Xpeng GX targets 'Series 9' SUVs, but from a pricing perspective, Xpeng GX targets 'Series 8' SUV products."
With the announcement of Xpeng GX large order data, Xpeng Group's stock price also surged on May 21. As of the close on May 21, Xpeng Group Hong Kong stock price rose 4.57%, quoted at 60.6 HKD/share, with intraday gains exceeding 8% at one point.
As the culmination of Xpeng's 12 years of technical accumulation, GX integrates three core technologies: Robotaxi intelligent driving, flying car safety redundancy, and embodied intelligence chip architecture, directly addressing seven industry pain points — large cars should be easy to drive, interior has quality but not showy, driving is enjoyable, safe enough, low energy consumption, smart enough, sufficient space. The entire series is standard-equipped with over 100 leading technologies at the 500,000 level, redefining the 300,000 level flagship standard.
Xpeng GX body size reaches 5,265×1,999×1,800mm, wheelbase 3,115mm, imposing presence. Universal Sky-Ground front and rear through lights paired with aerospace-grade ceramic 24K gold logo, identification maxed out; four-door electric doors support anti-clamp anti-drop, active obstacle avoidance, designed for next-gen unmanned driving. Exterior offers Peak White, Polar Black, Fjord Gray, Danxia Red, Cloud Desert Gold (Matte), Kunlun Cloud Realm (Silver Grey Bi-color) 6 color schemes, among which Matte Cloud Desert Gold uses BASF top matte clearcoat, paint film quality benchmarked against ultra-luxury brands.
To solve the pain points of difficult turning and parking for large cars, GX full series standard-equipped rear-wheel steering, achieving 5.4m minimum turning radius, flexibility comparable to A0-class sedans, turning and parking calmly. At the same time equipped with million-pixel AI digital projection headlights, possessing 1.3 million pixel-level precise shading capability, can achieve following distance warning, driving intention projection, welcome light carpet, etc.; UWB key links electric side steps, sensing welcome from 3.5 meters away, matched with industry-leading 6 sets of external microphones and 2 external interactive speakers, external voice vehicle control is convenient, ritual sense full.
Xpeng upholds the "Technology Luxury" concept, rejecting piled-up flashy configurations, carrying hardcore technology with simple design. Interior offers Dawn White, Forest Mist Purple, Platinum Brown three color schemes, utilizing a star-soft translucent leather craftsmanship where ambient lighting is hidden beneath the leather. When lit, it shines like a galaxy; when off, it blends seamlessly.
In terms of space, GX creates a cross-level experience of "First row beyond Series 7, Second row Maybach, Third row Alphard". 180mm ultra-wide second-row central aisle + 1,324mm open height, elderly and children pass freely; Third row is the widest in class, and is the only third row in class that can lie flat, seats support 0-180 degrees backrest and headrest electric stepless adjustment, full heating function, equal rights with first and second row.
Storage capabilities are equally impressive; with 6 people fully loaded, the trunk capacity reaches 673 L (best in class). After folding the third row in a 50:50 independent electric manner, it can switch between a large five-seat or super large four-seat mode, with a maximum expansion capacity of 1,748 L, easily accommodating large items. Additionally, there are 62 high-precision storage spaces throughout the car plus 3,180W of interior power supply, suitable for diverse scenarios like outdoor office work and travel photography.
As the first mass-produced Robotaxi model featuring full-stack self-developed technology, GX is equipped with the Turing AI chip across the series, offering up to 3,000 TOPS computing power. Empowering the second-generation VLA intelligent driving system, it achieves a leap from "having roads to travel" to "traveling even where there are no roads". Capabilities such as navigation-free roaming in park garages and starting from a standstill in all scenarios lead the class.
Regarding safety, GX adopts a 16,000T front-and-rear integrated die-casting "Castle Body" with a torsional stiffness of 56,000 Nm/deg, capable of withstanding a 720° five-link chain extreme collision test. It covers 11 airbags across all three rows and debuts the "All-Weather, All-Scenario Steady Ride System," which automatically executes "Warning - Lane Change - Parking - Help Call," protecting the whole family during travel.
In terms of power and range, pure electric four-wheel drive version CLTC range 750 km, energy consumption 15.2 kWh/100km, 5C supercharge 12 minutes recharge 525 km; Super Extended Range version comprehensive range 1,585 km, zero to hundred acceleration 4.98 seconds, balancing long range and strong power.
Xpeng GX takes "Dedicated to all people struggling for themselves and for the era" as the core proposition, accurately anchoring user groups balancing family responsibility and self pursuit. In the large six-seat SUV red ocean market, GX jumps out of traditional "configuration piling" logic, taking Physical AI technology as the core, achieving "Easy to drive, easy to use, safe, smart" full dimension breakthrough, ending high-end SUV "Trade-off Difficulty".
From industry layout perspective, GX is not only a key model for Xpeng brand upward, but also an important landing carrier for its transformation from car company to "Physical AI Company". As of now, Xpeng has built 9 major R&D centers globally, R&D personnel ratio over 40%, and started localization production projects in Indonesia, Austria, Malaysia, globalization strategy continues to advance.
In the future, Xpeng GX will, with high-level technology standard across series, cross-level product power and sincere pricing, reconstruct the 300,000 level flagship SUV value benchmark, accompany users carrying worries and love, calmly rushing to mountains and seas, exploring infinite boundaries of life.
