Exclusive-China's Xpeng plans to offer tech solutions to foreign automakers

BEIJING, Sept 17 (Reuters) - Chinese electric vehicle maker Xpeng plans to offer its technology to foreign automakers beyond partner Volkswagen as it seeks new revenue streams, according to two people familiar with the matter.     

Xpeng has been in contact with some potential partners that have expressed interest in its technology, one of the sources said.

The company plans to offer its electrical and electronic architecture, cockpit systems, Turing AI chips, and advanced-driver assistance software to other firms, the source said. Potential partners could also include foreign software developers and automobile suppliers.

The EV maker, which is expanding into robotaxis, humanoid robots and flying cars, also plans to broaden its technology licensing and customisation business to cover robotaxi, robotics and other physical AI applications, the second source said. Its offering would also include the operational deployment of Xpeng's robotaxis.        

Reuters is reporting the plans for the first time.

The sources did not identify the automakers or other potential partners. 

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The expanded offerings come as Chinese EV makers are reshaping vehicle design and technology worldwide.

Xpeng established a strategic commercialisation team about six months ago to explore new technology partnerships and other commercial possibilities, building on the experience gained through its alliance with Volkswagen, the sources said.

Xpeng's partnership with Volkswagen began in July 2023 when the German automaker bought a 4.99% stake in the Chinese EV maker for about $700 million. The alliance covers EV platforms, software and electronic architecture. 

The first jointly developed model, the ID.UNYX 08 electric SUV, incorporates Xpeng's cockpit systems, smart-driving technology and Turing AI chips.

The model entered mass production in March 2026, just 24 months after the collaboration started.

The partnership has emerged as a meaningful new source of revenue for Xpeng, particularly through technology services, although the company remained loss-making in the first and second quarters of the current financial year. 

While vehicle sales revenue was little changed in the second quarter and vehicle margin narrowed to 12.1% from 14.3%, revenue from services and other businesses almost doubled, lifting the segment's margin to 75.1% from 53.6% a year earlier.

On a post-earnings call in late August, Xpeng's management said the increase was driven mainly by technology research and development services provided under the Volkswagen partnership, as well as higher revenue from components and accessories sales.

The higher-margin services business could become increasingly important as Xpeng expands into physical AI. CEO He Xiaopeng has said humanoid robots could eventually generate significantly higher margins than vehicles.

Xpeng's general-purpose humanoid robot, IRON, walked off production lines earlier this month as the company moves towards mass production by year-end. Xpeng plans to begin commercial deliveries in China and overseas markets in 2027.

The company has also accelerated its international expansion, with cumulative overseas sales surpassing 100,000 vehicles since entering Norway in 2020.

The G9L SUV, unveiled in Beijing on Thursday, is due to make its international debut at the Paris Motor Show next month and will become the fourth model to be built at Magna's plant in Austria, after the G6, G9 and P7+.

(Reporting by Qiaoyi Li, Zhang Yan and Ju-min Park. Editing by Mark Potter)