Xiaopeng He sends a construction start notice for 2026: Seize the "DeepSeek Moment" in autonomous driving

February 24th, on the first day back to work after the Year of the Horse Spring Festival holiday, XPeng Motors CEO He Xiaopeng sent an open letter to all employees titled “Steady Progress to Breakthrough, 2026 Together for a New Decade of Physical AI.”

In 2025, XPeng’s sales reached a record high, with a total of 429,400 units sold, achieving 113% of the annual sales target. Last year, China’s new energy vehicle market was highly competitive; Li Auto’s full-year sales target completion rate was only about 60%. In comparison, among emerging forces, XPeng performed outstandingly in terms of completion rate.

According to He Xiaopeng, XPeng achieved three milestones last year: deepening strategic cooperation with Volkswagen; launching the Turing AI chip in vehicles; and the rollout of multiple new products such as “Dual-Ability Vehicles.” This year, XPeng’s new strategic deployment has officially emerged.

From the automotive business perspective, 2026 will be an unprecedented year of product launches for XPeng. The company will no longer rely on just one good car but will use a “product matrix” to compete in every core niche market. In the first quarter, XPeng will launch three super-range extension models, fully implementing the “Dual-Ability Vehicle” strategy.

The first product equipped with XPeng’s super-range extension, the XPeng X9, was launched in November 2025. On January 8, 2026, XPeng officially announced the 2026 models: XPeng P7+, XPeng G7 Super-Range Extension, XPeng G6, and XPeng G9.

He Xiaopeng stated that XPeng has created several blockbuster models in the past, but “that’s not enough.” The company will strive to “embed high quality into the system—covering design, craftsmanship, technology, and even user service,” achieving a dual leap in quality baseline and ceiling.

Since last year, He Xiaopeng has proposed the concept of “Physical AI,” hoping that XPeng can fully integrate physical AI and globalization this year.

One of the key initiatives is for XPeng to take the lead in China to seize the “DeepSeek” moment for autonomous driving.

He believes XPeng is at a historic turning point. Over the past month, He Xiaopeng and the XPeng team have continued internal testing and optimization of XPeng’s “Second-Generation VLA,” which He Xiaopeng regards as the “first version of XPeng’s full autonomous driving for L4 era.” He praised its effects as “stunning” and “emerging,” and announced in the letter that Volkswagen will be the launch customer for XPeng’s “Second-Generation VLA” autonomous driving solution.

In the wave of AI, organizational structures within automakers are being redefined. In February, XPeng’s Autonomous Driving Center and Intelligent Cockpit Center merged into the “General Intelligent Center.” He Xiaopeng stated that the main benefit of integrated cockpit and driving decision-making is that “driving decisions and human-machine interaction are no longer separate.” He also predicted that after sharing a common AI foundation model, future XPeng users will only need to say, “Take the road ahead and avoid the red lights,” and XPeng vehicles will follow the commands.

He Xiaopeng said this year will be a watershed for XPeng’s embodied intelligence, moving from “capability” to “mass production.” XPeng aims to become the world’s first tech company to fully mass-produce three cutting-edge AI businesses: robots, flying cars, and Robotaxis, all within the same year.

Specifically, the Robotaxi service will begin pilot operations with ride-hailing models this year. He Xiaopeng predicts that between 2027 and 2028, it will enter a rapid growth phase, with significant increases in revenue, market value, and potential.

The new generation IRON robot will start mass production by the end of the year, meeting “automotive-grade standards for AI agents,” with the goal of “becoming the world’s first high-end humanoid robot to be mass-produced at scale.” He Xiaopeng explained that XPeng’s robots will initially be deployed in scenarios such as guided tours and shopping guides, with SDKs open to global developers.

The split-type flying car, “Land Carrier,” has already rolled off the trial production line and will achieve large-scale production and delivery within this year.

XPeng’s overseas expansion strategy will be fully upgraded this year. In 2025, XPeng’s total overseas deliveries exceeded 45,000 units, a 96% year-over-year increase, ranking first among Chinese new energy vehicle startups in overseas pure electric vehicle sales, and second among independent brands. In 2026, XPeng plans to introduce at least four new models abroad. He Xiaopeng hopes to double XPeng’s overseas sales, aiming to sell 1 million units abroad by 2030 and contribute over 70% of profits.