Xpeng’s 600,000-Vehicle Target Reveals Why Chinese EV Makers Are Fleeing the Car Business

When an automaker announces ambitious sales targets while simultaneously declaring it doesn’t want to be known as a car company, something interesting is happening. Chinese EV maker Xpeng just revealed 2026 delivery goals of 550,000 to 600,000 vehicles, representing up to 40% growth, according to Chinese tech portal 36Kr citing an internal strategy meeting. A company source confirmed the report to Reuters.

The numbers sound bullish until you remember what we reported in November: Xpeng’s Q4 revenue forecast disappointed Wall Street by 12% despite record deliveries. That disconnect between volume success and financial disappointment explains everything about where Xpeng is actually heading.

The Real Story Behind the Numbers

Xpeng delivered 429,445 vehicles in 2025, up 126% from 2024. Impressive growth, but the Volkswagen-backed company just announced a strategic pivot toward “physical AI” with plans for robotaxi street trials and mass production of humanoid robots later this year.

CEO He Xiaopeng stated bluntly at a recent Guangzhou event: “Xpeng definitely does not want to become a car company that simply sells hardware cheaply.”

That’s the delta mainstream coverage is missing. The 600,000-unit target isn’t confidence in the EV business. It’s a holding pattern while Xpeng builds its escape hatch from China’s brutal price war that continues destroying margins across the sector.

EVXL’s Take

Xpeng’s pivot mirrors Tesla’s strategy of using vehicle sales to fund robotics and autonomy development. The difference? Tesla can afford paper losses while chasing robotaxis. Xpeng posted a 380 million yuan Q3 loss and promises breakeven by end of 2025. Setting aggressive delivery targets while publicly distancing from being “just a car company” tells you management sees the writing on the wall for pure-play EV manufacturing margins. Watch for Xpeng’s robotaxi trials and humanoid robot production timelines in H2 2026 as the real indicators of whether this pivot has legs or becomes another distraction from a fundamentally challenged core business.

Editorial Note: This article was researched and drafted with the assistance of AI to ensure technical accuracy and archive retrieval. All insights, industry analysis, and perspectives were provided exclusively by Haye Kesteloo and our other EVXL authors, editors, and Youtube partners to ensure the “Human-First” perspective our readers expect.