Xiaoyi Lei

Xiaoyi Lei inquired about the progress of XPeng's overseas localized production for next year and how the company plans to leverage its smart driving capabilities to drive international sales growth.

Answer

Brian Gu, Vice Chairman and President of XPENG, confirmed that local production started in H2 2025 in Indonesia and with Magna in Austria, with capacity ramping up to tens of thousands in Europe and high thousands in Indonesia next year. XPeng is exploring additional local capabilities and supply chain development in other markets. International markets are expected to be a major growth driver with higher profit contribution in 2026 and beyond.

Xiaoyi Lei asked for an update on XPENG's overseas localized production progress for next year and how the company plans to leverage its smart driving capabilities to boost sales growth in international markets.

Answer

Vice Chairman and President Dr. Brian Gu confirmed that overseas local production, initiated in the second half of 2025 with facilities in Indonesia and Magna in Austria, is ramping up capacity. He anticipates tens of thousands of vehicles produced in Europe and high thousands in Indonesia next year. XPENG is actively exploring additional local capabilities and supply chain development in other markets, aiming to increase local content and implement further localization strategies. He expects international markets to be a major growth driver, contributing faster growth and higher profit margins in the coming years.

Xiaoyi Lei from Jefferies asked if the P7's new design focus represents a long-term strategic shift for Xpeng. She also inquired about how the company is adjusting its operations in response to China's 'anti-involution' policy in the auto sector.

Answer

CEO He Xiaopeng confirmed a fundamental strategic shift to prioritize aesthetics, moving design to the forefront of the development process to create more emotionally impactful products. Brian Gu, Vice Chairman and Co-President, addressed the policy question, stating that it aligns with Xpeng's focus on innovation and quality over pure price competition and that Xpeng is fostering a healthier ecosystem.

Xiaoyi Lei of Jefferies asked about XPeng's humanoid robot initiative, specifically how it leverages autonomous driving know-how, what its product advantages are, and the timeline for mass production.

Answer

CEO He Xiaopeng detailed that the robotics division leverages about 70% of the automotive R&D stack, including chips, AI models, and EEA. He cited key advantages as being data-driven with full-stack in-house capabilities. He targeted 2026 for initial mass production, followed by rapid OTA iterations to improve capabilities.

Xiaoyi Lei from Jefferies inquired about the expected proportion of overseas revenue in the next 2-3 years and plans for local capacity expansion. She also asked about potential adjustments to the chip procurement strategy in light of Chinese policy and requested an update on the cooperation with FAW Group.

Answer

CFO Phil Zhou reiterated the company's goal for international business to contribute at least 40% of revenue by the 2026-2027 timeframe, supported by investments in global R&D and manufacturing. COO Peter Cirino noted that ECARX is well-positioned for chip sourcing with both global partners like Qualcomm and a domestic solution via its SiEngine JV. Regarding FAW, Phil Zhou confirmed two programs are launching by year-end and that ECARX aims for over 50% penetration in the Hongqi brand by 2028-29.