China's Xpeng launches AI-powered EV in Munich with eyes on Europe

Chinese electric vehicle manufacturer Xpeng has just launched its new L03 in Munich, using Germany's automotive capital as the backdrop to showcase a future where artificial intelligence is as central to a vehicle as its battery or motor.

The launch is part of the company's "In Europe, for Europe" strategy as it expands its presence in the region.

While the sleek electric sedan is appealing, Xpeng says its real differentiator lies in its AI-powered features including intelligent voice interaction, personalized driver preferences and advanced driver assistance designed to make the driving experience more intuitive.

"For us, it's all about physical AI," said Sven De Smet, Head of Brand and Product at Xpeng Europe. "We make products you can touch, where AI is able to act and react with its environment."

'A physical AI company'

The company is also developing its own AI chips, autonomous driving technology, a flying vehicle and a humanoid robot called Iron, reflecting its goal of becoming what it describes as a "physical AI company" rather than simply an automaker.

"We don't see ourselves as a car company that does technology," De Smet told CGTN. "We see ourselves as a technology company that also does cars."

The strategy reflects a broader transformation taking place across the global automotive industry. As electric technology becomes the standard, manufacturers are shifting their focus toward software, AI and autonomous driving capabilities.

"Everybody's going into that direction to have AI-assisted driving," said Beatrix Keim, Director of the Centre for Automotive Research. 

"You see Mercedes partnering with Momenta, BMW with Momenta, Volkswagen with ThunderSoft, Cariad and Horizon Robotics. AI is also being used in vehicle development and manufacturing processes. It's happening throughout the industry, not only in China."

Technology beyond performance

But as AI becomes more deeply integrated into vehicles, questions over governance, data security and technology sovereignty are being asked.

Keim notes that governments are increasingly introducing rules governing the development and international use of advanced AI technologies.

"A lot of people do not understand that China, for example, has, since January, a law that prohibits or restricts the export of automotive software, especially on the AI side, out of the country," she told CGTN. "It's not totally forbidden, but the process and the extent of those restrictions remain very unclear at the current point in time."

The comments highlight how AI is becoming more than just a technology issue. As countries move to protect advanced AI, carmakers could face new rules and restrictions when bringing AI-powered vehicles to markets around the world.

Nevertheless, for Xpeng, AI remains at the center of its long-term vision. 

By launching the L03 in Europe, the company is recognizing that competition in the next generation of EVs is no longer only about range, price or performance, but about intelligent software that transforms how people interact with their vehicles.