Chinese electric vehicle maker Xpeng unveiled its compact sports utility vehicle (SUV) L03 in Europe and put forward an expansion strategy spanning humanoid robots and flying cars beyond EVs, blockchain media outlet Cryptopolitan reported on July 18 local time.

Xpeng unveiled the L03 at a European launch event in Munich, Germany, and defined its business strategy as "physical AI".

Xpeng's physical AI refers to combining its self-developed artificial intelligence (AI) chips and large language models (LLMs) with physical products such as cars, robots and power systems. The technology is currently applied to three product lines: electric vehicles, humanoid robots and flying cars. The event went beyond a simple new model announcement and showed Xpeng's direction in seeking to shift from an automaker to a comprehensive technology company.

The L03, a key product, is a compact SUV with a maximum output of 180 kW. Its maximum driving range is 445 km under the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), and it is priced at 35,600 euros. Xpeng stressed that the L03 is priced below competing models from Tesla and Hyundai Motor.

The L03 will be the first of Xpeng's overseas sales vehicles to include Google Maps integration. Drivers can use Google Maps directly on Xpeng's navigation screen without installing a separate application or mirroring a smartphone screen to the vehicle.

The function supports real-time traffic guidance, EV route planning and estimates of energy use, and it is linked with Xpeng's NGP driver-assistance system. As a result, overseas users will be able to use both navigation convenience and driver-assistance functions. Xpeng said it will be the first automaker in the Asia-Pacific region to ship vehicles with Google Maps installed as standard in in-car navigation.

Xpeng also stressed that its businesses beyond cars are nearing the mass-production stage. Chief Executive He Xiaopeng (허샤오펑) said humanoid robots and flying cars are no longer the realm of science fiction, and said the company plans to mass-produce the humanoid robot "Iron" and the flying car "Ariji" soon. Ariji has been developed over about 13 years. He said the company plans to introduce the flying car to European customers in the near future.

Xpeng's electric vehicles, robots and flying cars are all based on its self-developed "Turing" semiconductors. The Turing chip has computing performance of 750 TOPS per chip and a 40-core processor. Xpeng plans to expand cars, robots and flying cars on a single technology platform based on common semiconductor and software technology.

Xpeng also made clear it sees a competitive landscape with Tesla in autonomous driving. Xpeng presented a roadmap to achieve Level 4 autonomous driving technology by 2028. This is a higher level than Level 2 driver-assistance systems including Tesla's Full Self-Driving (FSD). He claimed Xpeng's vision-language-action (VLA)-based system shows better performance than Tesla FSD on narrow roads and in complex driving environments.

Xpeng's driving technology is also expanding beyond its own vehicles to other automakers. Volkswagen began mass production in March of the first jointly developed model applying Xpeng's driving system and Turing chips. Xpeng is also developing a robotaxi that uses the same technology system.

Xpeng is also accelerating expansion in the European market. Since entering Europe in 2024, Xpeng has sold more than 60,000 vehicles locally and now sells vehicles in 65 countries worldwide. In China, cumulative shipments have surpassed 1 million units. It also operates a Europe-dedicated research and development centre in Munich. The new L03 will be sold in 64 countries and regions including Europe.

Sven De Smet said of the company's identity, "We are not a car company that uses technology, but a technology company that makes cars."

With the European launch, Xpeng is stepping up sales of price-competitive EVs while moving to formalise a business structure that links humanoid robots and flying cars around its in-house AI chips and autonomous-driving software.