Chinese EV Makers Reportedly Pursue Tech Sales
Chinese EV Makers Reportedly Pursue Tech Sales
Anonymous
Key Points
1
Li Auto’s Mach M100 is a mass-produced driver-assistance chip built on a 5-nanometer automotive-grade process, with 1,280 TOPS of computing power per chip; it is already used in Li Auto vehicles.
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Li Auto established Xinchuang Zhihe (Shanghai) Technology Co. on July 13, with a business scope covering integrated-circuit chip design and sales, providing a corporate structure for independently operating the chip business.
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Xpeng’s services-and-other revenue rose 93.9% year over year to about $400 million in the second quarter of 2026, indicating that non-vehicle businesses are already becoming a meaningful source of revenue.
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Xpeng created a strategic commercialization team roughly six months ago to pursue technology partnerships, building on its Volkswagen experience; Volkswagen acquired a 4.99% stake in Xpeng for about $700 million in July 2023.
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The G9L launched with six variants and limited-time prices ranging from 231,800 yuan to 309,800 yuan. Its four battery-electric versions offer CLTC ranges of up to 755 kilometers, while its two extended-range versions are equipped with all-wheel drive.
Chinese EV makers Li Auto and Xpeng are turning their internal technologies into profit centers, seeking to sell advanced chips, software and AI systems to other automakers and suppliers. CNEVPost reported that Li Auto is pursuing external customers for its Mach driver-assistance chips and range extenders, while Electrive and Global Sources noted that Xpeng has held discussions with foreign automakers about licensing its electronic architecture and smart-cockpit systems. The shift reflects a broader bet that homegrown Chinese automotive technology can compete globally.
Li Auto's Chip Business Becomes Standalone Unit
Li Auto's Mach M100 is a mass-produced driver-assistance chip with 1,280 TOPS of computing power. CNEVPost reported the chip is already used in Li Auto vehicles and built on a 5-nanometer automotive-grade process. Li Auto established Xinchuang Zhihe (Shanghai) Technology Co. on July 13, creating a corporate structure to operate the chip business independently and pursue external sales.
Xpeng Expands Tech Licensing Beyond Volkswagen
Xpeng created a strategic commercialization team roughly six months ago to pitch its technology to potential partners. Electrive and Economic Times reported that Xpeng has held talks with foreign automakers, software companies and suppliers about licensing its electronic architecture, AI chips and advanced driver-assistance software. Volkswagen's 4.99% stake purchase in July 2023 for about $700 million served as a model for these licensing partnerships.
Xpeng's non-vehicle revenue surged 93.9% year over year to about $400 million in the second quarter of 2026. This growth shows that technology services are becoming a meaningful business line. The company is exploring applications in robotaxis, robotics and other physical-AI products beyond traditional vehicles.
G9L Launch Adds Multiple New Revenue Opportunities
Xpeng launched the G9L five-seat SUV in China with six variants and prices ranging from 231,800 yuan to 309,800 yuan. Four battery-electric versions offer up to 755 kilometers of CLTC range, while two extended-range versions feature all-wheel drive. The new model expands Xpeng's vehicle lineup while creating partnerships with technology licensees.
Why Chinese Automakers Are Monetizing Their Tech
Chinese EV makers built advanced chips and software in-house to compete globally. Now they see a second revenue stream: selling those technologies to rivals. Analytics Insight noted that Xpeng is even integrating humanoid robotics into its manufacturing strategy, showing how broad its tech ambitions have become. For Li Auto and Xpeng, technology licensing offers profits without building new factories.
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