China’s EV Giants Are Pivoting to Humanoid Robots—Here’s Why It Matters

Key Takeaways

• BYD, XPeng, GAC, and NIO have all built or are actively exploring humanoid robots.
• Chinese electric vehicle (EV) makers’ pivot to robotics builds on their expertise in factory automation.
• Robot workers built for manufacturing could also have applications elsewhere.

For major Chinese electric vehicle (EV) makers, years of developing robotic and mechatronics systems for highly automated smart factories have catalyzed an emerging interest in humanoid robots.

While robots built by BYD, XPeng, GAC and NIO have their roots in manufacturing and logistics, they could one day break free from the factory floor as the technology evolves.

From Smart Factories to Humanoid Robots

From the beginning, factory automation has been a driving force behind China’s EV revolution.

EV production lines in the country are almost completely free of human workers. In their place, giant mechatronic systems move chassis around like snacks in a vending machine. Meanwhile, swarms of robotic arms work in perfect synchronization to assemble even the most intricate components.

For manufacturers, humanoid robots are the logical next step in the journey to ever-greater automation, replacing the last few human workers still required to produce vehicles.

Among the first movers, NIO and Dongfeng Liuzhou Motor started trialing robot workers made by Shenzhen-based UBTECH last year.

Several months later in November, XPeng showcased Iron, a new bot it said had already been deployed on the factory floor.

Meanwhile, Guangzhou Automobile Group (GAC) announced plans to start using its GoMate robots in manufacturing facilities from 2026.

Finally, BYD joined the fray in December 2024, when it opened a dedicated lab to explore the technology.

A Competitive Advantage

Like the EV industry itself, China’s emerging humanoid robots benefit from significant cost advantages compared to competitors elsewhere.

For example, while Tesla’s Optimus is expected to retail for $30,000–$40,000 when it goes on sale next year, a range of sub-$20,000 Chinese models are available to buy today.

Furthermore, Chinese manufacturers could use humanoid robots to pull even further ahead in factory automation. This would give the country’s EV industry yet another efficiency boost, driving down prices that already undercut Tesla and its Western peers.

Beyond Electric Vehicles

While Chinese EV companies’ initial interest in robots is rooted in manufacturing automation, XPeng and GAC have both hinted at more general use cases.

Just as Tesla is using its factories as an Optimus testing ground ahead of a planned wider launch, its Chinese rivals are well positioned to pivot into other markets.

One of the features of the EV industry is its proximity to the electronics sector, where China’s manufacturing dominance is undisputed.

From spatially aware AI to the latest battery tech, many of the technologies being developed by EV companies also have applications in robotics.

With mainstream adoption of humanoid robots potentially a few years away, it makes sense that an EV powerhouse like China would secure a leading role.