Introduction: As startups like Unitree and Ubtech surge ahead in the robotics race, automakers such as XPeng and Li Auto are leveraging aligned technologies, extensive distribution networks, and substantial cash reserves to enter the fray. A 'total war' between the two sides is imminent, leaving Unitree and its peers with a rapidly closing window to break through.

Over the past few years, the main protagonists in China's robotics sector have been startups like Unitree, Ubtech, and Songyan Power.

As pioneers, they have validated product commercialization and are core drivers of current industry standards, product pricing, and overseas market expansion.

However, a far larger cross-border force is closing in at full speed.

Star automakers like XPeng and Li Auto are leveraging the highly aligned technological foundations of smart cars and humanoid robots, along with more mature marketing systems and greater capital reserves, to make significant inroads into the robotics sector.

Under these circumstances, the window for startups like Unitree and Ubtech to establish their moats is rapidly shrinking, and a race for survival and industry influence has begun.

01 Unitree and Its Peers Just Established Their Foothold When Automakers Came to 'Crash the Party'

Thanks to their first-mover advantage, Unitree and its peers have begun to carve out their own territories in this sector.

The largest player is undoubtedly Unitree. Last year, the company shipped 5,511 units, topping the global robot shipment rankings, and took the lead in the scientific research and education, and inspection markets. At the same time, it launched the G1 model priced at RMB 99,000 in an attempt to expand into the consumer market.

Ubtech, the 'first humanoid robot stock listed in Hong Kong,' has initially established its barriers in industrial scenarios. In 2025, its full-size industrial-grade humanoid robot delivery volume ranked first globally, reaching 1,079 units.

Other players have adopted differentiated strategies. For example, Songyan Power launched the humanoid robot 'Xiaobumi' for family, companionship, and educational scenarios last year. Priced at just RMB 9,998, it is the industry's first high-performance humanoid robot priced under RMB 10,000.

However, a force capable of reshaping the market landscape is approaching.

Currently, nearly ten domestic automakers have clarified their layout (layout) in the robotics sector, including new energy vehicle makers like XPeng and Li Auto, as well as traditional automakers like Changan, SAIC, and Chery.

Automakers are not entering the robotics sector 'just for fun'; some have shown a strong commitment.

On June 10, XPeng CEO He Xiaopeng issued an internal letter to all employees, stating that he would concurrently serve as CEO of the robotics business, directly overseeing strategy, product development, and commercialization. Prior to this, Li Auto CEO Li Xiang stated that 'the ultimate form of automobiles is robots' and that the company would '100% develop humanoid robots.'

Once automakers complete their comprehensive layout (layout) in the robotics field, competition in the sector will intensify sharply. While robots are currently attracting capital and attention, the market size remains relatively small, with global shipments of complete robots totaling just 18,000 units in 2025.

When automakers enter such an early-stage market, a 'full-scale conflict' with Unitree and its peers is inevitable.

For Ubtech, which focuses on industrial scenarios, self-developed industrial robots by automakers will squeeze its automotive production line orders. In the more 'attractive' consumer market, automakers can leverage their offline dealership networks to provide robot experiences and sales, directly diverting customers from Unitree and Songyan Power. This battlefield is likely to see the fiercest clashes between the two sides.

Meanwhile, the conflict will also spread overseas.

Since 2018, the domestic auto market has ended 28 consecutive years of rapid growth and entered a stock era. Against this backdrop, automakers are rushing to go global and establish sales channels overseas, directly competing with Unitree's well-established overseas dealer network. Last year, Unitree's overseas revenue accounted for 43.65%, and in the two years prior, this figure exceeded 55%.

Let's not forget another powerful player overseas. Tesla's Optimus humanoid robot is planned to begin mass production in July-August this year, and Elon Musk believes that this product will account for 80% of Tesla's market value in the future.

02 A Lucrative Field: Automakers Are Well-Prepared

Currently, robotics is a more profitable business than automobiles.

In early 2023, Tesla's price cuts ignited a price war in the domestic auto market, causing the profitability of the entire automotive industry to decline. By 2025, the automotive industry's profit margin had dropped to 4.1%, the lowest in five years, and further fell to just 3.7% from January to April this year.

Data Source: Cui Dongshu, Secretary-General of the China Passenger Car Association

In this competitive environment, even the most competitive leading players may experience performance fluctuations.

For example, Li Auto, known in the industry for its strong product definition capabilities and efficiency, achieved annual profitability in 2023, becoming the third new energy vehicle maker to do so after Tesla and BYD. However, by the third quarter of 2025, Li Auto had returned to losses, with its gross margin declining by 5.7 percentage points year-on-year to 16.3%.

While automakers are struggling to survive, Unitree and its peers have demonstrated strong profitability. In 2025, Ubtech's gross margin was 37.7%, up 9 percentage points year-on-year; meanwhile, Unitree's gross margin reached 60.13%.

The prospects for the robotics sector are also highly attractive. According to a Morgan Stanley research report, by 2050, the global installed base of humanoid robots will reach 1 billion units, corresponding to annual market revenue of USD 7.5 trillion. Currently, the global market size of the entire automotive industry supply chain is approximately between USD 3.5 trillion and USD 4.9 trillion.

At the same time, the barrier to entry for automakers to cross into the robotics sector is not high.

Technologically, the overlap between smart cars and humanoid robots exceeds 70%, with much software and hardware being interchangeable. For example, the autonomous driving technologies accumulated by automakers over the years can be directly applied to humanoid robot development, saving startups years of trial-and-error exploration.

For instance, XPeng's second-generation VLA architecture can be simultaneously applied to the intelligent driving systems of its in-sale models, RoboTaxi (autonomous taxis), and robotics business. Currently, XPeng is the furthest along among domestic automakers in robotics development. Its humanoid robot, IRON, already supports natural dialogue capabilities and can simulate complex human actions such as standing, sitting, and lying down.

XPeng's Humanoid Robot, IRON

In terms of resources, automakers have an absolute scale advantage.

New energy vehicle makers like XPeng and Li Auto each have hundreds of direct-sales stores. However, Unitree and its peers are only just beginning to establish such networks. In late April this year, Unitree opened its first direct-sales store in the industry at Wangfujing Intime in88 in Beijing.

This vast scale difference is also reflected in the crucial area of funding.

Taking XPeng as an example, this new energy vehicle maker, which has been established for over a decade, has been viewed by the market as still in the danger zone due to its consistent inability to achieve annual profitability.

Even so, XPeng's cash on hand far exceeds that of Unitree, which has already achieved profitability.

According to financial reports, as of December 31, 2025, XPeng's total cash and cash equivalents exceeded RMB 17.3 billion. In comparison, Unitree's prospectus disclosed that its monetary funds for the same period were RMB 1.42 billion.

03 A Race for Survival: How Long Can Unitree and Its Peers Stay Ahead?

Naturally, Unitree and its peers will not sit idly by as automakers encroach on their territory. Their most frequent move currently is to heavily invest in embodied AI research and development to strengthen the 'brain' of their robots.

Unitree, which recently passed its listing review, disclosed in its prospectus that it plans to raise a total of RMB 4.201 billion through this IPO, with RMB 2.022 billion earmarked for intelligent robot model research and development projects.

In addition to in-house R&D, they are also recruiting talent from the automotive industry. In April this year, Dr. Li Liyun, former Vice President of XPeng and head of autonomous driving, joined Zhongqing Robotics as CTO. This move was seen by the outside world as an effort by Zhongqing to strengthen the 'brain' capabilities of its robots.

The player that first achieves breakthroughs in 'brain' capabilities will gain a solid technological barrier. Unitree CEO Wang Xingxing once stated in an interview: 'Whoever can deploy a dedicated large model for robots will become a global leader in AI and robotics.'

At the same time, Unitree and its peers are continuously strengthening their presence in specific regions and scenarios, aiming to deepen the bond between their products and audiences.

For example, Unitree, which leads in overseas expansion, has frequently showcased its products on programs such as 'America's Got Talent' and ESPN's 'Inside the NBA' to enhance brand recognition in the U.S. market.

Unitree's Products Appear on ESPN's 'Inside the NBA'

Songyan Power, on the other hand, is focusing on niche markets such as companionship and education, which automakers are temporarily not prioritizing. On June 9, Songyan Power entered into a deep strategic cooperation with the parent-child brand Kidsland. For Songyan, this collaboration helps expand its offline channels to reach target groups.

These niche segments have unique industry barriers, and automakers, constrained by their strategic priorities and other factors, will find it difficult to deeply penetrate them in the short term.

However, the window for Unitree and its peers to establish complete barriers is already very limited.

XPeng's IRON humanoid robot plans to achieve a monthly production capacity of 1,000 units by the end of 2026, prioritizing deployment in offline stores and industrial parks for standardized service scenarios such as shopping guidance and inspections. Elon Musk has also publicly stated that Optimus humanoid robots are planned to be sold to retail customers by the end of 2027, officially entering the mass consumer market.

In this race for survival, many uncertainties remain regarding how long Unitree and its peers can maintain their lead. However, one thing is certain: in the business world, examples of late-moving giants crushing new stars with their scale are not uncommon.

After Netflix's rise, Disney leveraged its financial resources and numerous IPs to surpass Netflix in streaming subscribers within just three years. Zoom was the first to popularize lightweight cloud video, quickly gaining traction in education and SME markets and validating the video conferencing sector. However, it struggled to compete with Microsoft's Teams, which was launched later and leveraged Microsoft's existing user base.

To avoid the fate of players like Netflix, Unitree and its peers need to run even faster.