- Xpeng will open VLA 2.0 test drives across 732 stores in China starting March 11.
- Analysts view the technology's rollout as a key driver for Xpeng's sales recovery.
Xpeng is set to begin nationwide test drives for its second-generation Vision-Language-Action (VLA 2.0) autonomous driving system, a move analysts see as a crucial step for the company's sales recovery and technological leap.
The test drives will officially launch on March 11 across Xpeng's 732 stores in China, covering models including the all-new P7 Ultra, G7 Ultra, and X9 Ultra, according to a Weibo post on Tuesday.
Xpeng said that VLA 2.0 will deliver a driving experience on par with seasoned human drivers and welcomed comparative reviews against other smart driving systems.
Deutsche Bank analysts believe the performance enhancements of VLA 2.0 will be the primary driver of Xpeng's sales recovery in 2026.
In a research note on Monday, analyst Wang Bin's team said their evaluation showed the system delivered a comprehensive leap forward, reaching new heights in smoothness, all-scenario capability, and efficiency.
Although Xpeng started 2026 on a weak note with sales volume in the first two months down 42% year-on-year, deliveries are expected to recover sequentially, the team noted.
Deutsche Bank forecasts Xpeng's full-year 2026 volume to reach 530,000 units, representing a 23% year-on-year growth.
Morgan Stanley described VLA 2.0 as a "bold leap forward" in a March 2 research note, arguing it will help convince investors that Xpeng is more than just a car company.
Xpeng frames its overall autonomous driving strategy as "Physical AI," an approach centered on the decision to develop a proprietary multimodal foundation model from scratch.
The company claims the system boosts overall driving efficiency by 23% while ensuring safety, with efficiency gains reaching as high as 76% on narrow roads.
To provide computing power, Xpeng developed a vertically integrated technology stack combining its in-house Touring chip. This software-hardware co-design allows the chip to achieve an 82.5% utilization rate.
Volkswagen will be the first external launch customer to adopt Xpeng's second-generation VLA.
Xpeng plans to roll out VLA 2.0 to the Ultra versions of the all-new P7, G7, and X9 in late March, with other models receiving over-the-air (OTA) updates in April. Overseas markets will receive the technology in 2027.
