Dongwu Securities Maintains "Buy" Rating on XPENG-W (09868), Forecasts Transition from Auto to AI Tech by 2026

Stock News12-08

Dongwu Securities reiterated its "Buy" rating on XPENG-W (09868), highlighting the company's dual focus on "extended-range technology + global expansion" for consumer markets (C-end) and its entry into the Robotaxi sector with full-stack in-house R&D capabilities. The firm is accelerating its evolution from a smart EV maker to a multi-scenario smart mobility ecosystem platform.

**Key Insights:** 1. **C-End Strategy:** XPENG's core strength lies in its ability to produce mass-market hits. Its extended-range technology, featuring large batteries and high-efficiency range extenders, delivers industry-leading electric-only range and fuel-to-electric conversion rates. The company plans to launch seven new models (both BEV and EREV) by 2026. Global expansion—via localized production, R&D centers, and channel growth—is becoming its second growth engine.

2. **B-End Robotaxi Opportunity:** China’s Robotaxi market, driven by policy tailwinds and tech breakthroughs, is projected to hit an inflection point by 2027, reaching RMB83.1 billion by 2030. XPENG aims to begin pilot operations with pre-installed mass-produced vehicles in H2 2026, leveraging its proprietary VLA 2.0 AI model and innovative business models to disrupt the mobility market.

3. **Volkswagen Partnership:** XPENG has upgraded its role to a smart tech solutions provider for Volkswagen. Collaboration now spans joint development of the G9 platform, E/E architecture, and Turing AI chips. With Volkswagen expected to sell 2.6M+ units in China by 2026 (NEV penetration >10%), the two will co-launch two full-size BEVs that year and deepen ties in charging infrastructure.

4. **Robotics & Flying Cars:** - **IRON Robot:** Combining bionic design (82 degrees of freedom, dexterous hands) with AI ("VLT+VLA+VLM" brain), IRON will enter commercial pilot phases (e.g., guided tours, retail) in 2026. - **A868 Flying Car:** The next-gen vertical-tilt-wing model, with 500+ km range, has secured 7,000 pre-orders (as of Oct 2025) and targets global deliveries in H2 2026.

**Risks:** Intensified auto price wars, weaker-than-expected demand, delays in L3/L4 policy rollouts, or slower commercialization of humanoid robots.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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