Xpeng has received approval to conduct Level 4 robotaxi demonstration operations across Guangzhou. The authorization allows the company, listed in Hong Kong and the US, to move beyond technical testing and assess how its service and business model work in public operations.
The company plans to use Guangzhou to refine a repeatable service model before offering complete robotaxi solutions to partners worldwide.
Reliable driving is only part of the test. Responding to bookings, dispatching vehicles, picking up and dropping off passengers, and handling exceptions must also work together to keep a robotaxi service running.
On October 8, Xpeng named its robotaxi business Xpeng Yoyo. It launched a dedicated page on its corporate website and a ride-hailing mini program, opening access to members of the public through invitation codes.
Yoyo is based on the Xpeng GX. Xpeng describes it as China’s first robotaxi developed entirely in-house and ready for mass production. It carries four proprietary Turing AI chips with effective computing power of 3,000 TOPS (trillion operations per second), along with the company’s second-generation vision-language-action (VLA) model. These technologies and its AI infrastructure extend capabilities developed for vehicles into Level 4 autonomous driving.
Speaking at the 2026 World Intelligent Connected Vehicles Conference, Xpeng chairman and CEO He Xiaopeng said its second-generation VLA model uses a common technical foundation for Level 2 through Level 4 capabilities, supporting the development of more advanced autonomous driving.
He expects Level 4 technology deployment around the second half of 2028, which he said will require coordinated hardware and software development across the system. Regulation will follow a different timetable. “I think it will be between 2028 and 2032,” he said, with deployment proceeding in stages across countries, regions, and use cases.
The Yoyo team plans to use real travel demand to refine vehicle operations and service procedures. It will track vehicle utilization, dispatch efficiency, service costs, and fleet management to improve the product and test whether the business model is sustainable.
Guangzhou is a base for Xpeng’s robotaxi R&D and mass production, and the first city in its global commercialization effort. Local operations will test whether the vehicle, autonomous driving software, and artificial intelligence capabilities can work together reliably and efficiently in an ongoing service.
Xpeng intends to supply technology to partners rather than operate large fleets itself. It plans to offer a complete package comprising the vehicle platform, autonomous driving software, and AI capabilities.
Partners would run transport services using their local resources and operating networks. Xpeng would earn revenue from hardware sales, technical services, and commissions. It hopes this model will make deployment easier for partners in different cities.
Overseas discussions are also underway. During the Paris Motor Show, He said Xpeng was in advanced talks with several leading European mobility platforms, with further details of those partnerships expected to emerge.
This article was adapted based on a feature originally written by SY and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.