XPENG does R&D in the US, but does not sell cars there. Here is the reason.

EV manufacturer XPENG will begin the global launch of its VLA 2.0 autonomous driving system next year, an AI-powered model that marks an important step in the company’s efforts to develop self-driving cars. Unfortunately, this technology won’t make it to the US, where high prices continue to keep Chinese automakers out of the country.

Yet despite this, XPENG continues to maintain its Silicon Valley R&D center, and develop its technology to be able to afford American drivers. Speaking to Mashable, the head of XPENG’s General Intelligence Center Dr. Xianming Liu explained that, although it is not in the US market and does not test its cars in the country, having an R&D center there is always very helpful in ensuring that it is familiar with driving habits and conditions around the world.

“We need to make sure that we and our R&D team understand the rules, the rules of the road, but also the needs of the customers or the habits of the customers. Once you have people driving in the area. [their cars] every day in Europe, the US, you will know what people will like,” said Liu. “The way people use it [their cars] and how the regulations differ. I mean the traffic rules are different, the road signs, everything is different.”

XPENG has also established an R&D center in Munich, Germany, with Liu telling Mashable that each of these locations offer the company some individual advantages. While Silicon Valley has plenty of talent and innovation, Germany leads the way in manufacturing and is home to several successful automotive companies. By conducting R&D in these areas, XPENG aims to use and learn from these resources.

“When you have an R&D center in every place in the world, you can bring all the talent, all the ideas together, and you can make sure that everyone complements each other,” said Liu.

EVs: the future of the automotive industry

This includes affecting Chinese resources as well. Like the San Francisco Bay Area, Liu said there is a lot of talent in China’s Greater Bay Area, including Guangzhou where XPENG is headquartered. The widespread adoption of EVs in China is also helping the development of autonomous vehicles in the region.

“We have the people, we have the freedom, we have the flexibility to innovate,” said Liu, talking about the beauty of their Chinese R&D center. “But also in China, the implementation of AI system is very fast… People are accepting the concept of AI, they are accepting the idea that [autonomous] driving, and also willing to use it. So this gives us a lot of room to keep on iterating the product. “

More than half of all new cars sold in China are New Energy Vehicles (NEV), meaning they run on electric power or are fully electric. This April, that number increased to more than 60 percent. China is not the only country to embrace EVs, with global sales of electric vehicles expected to increase by more than 25 percent by 2024. Almost all new cars sold in Norway by 2025 were EVs, while regions such as Latin America and Africa saw EV adoption double. In comparison, US EV adoption has fallen sharply over the past two years, although they still account for about 10 percent of new vehicle sales in the country.

“The new energy revolution is changing the world,” Liu said. “It is not only happening in the US, not only in China, but also in other countries. South America, Central America, even in Europe, in South Asia. So we will see the number continue to grow. And this can be very beneficial for the economy and the environment.”

These are not the only benefits of widespread EV adoption. Liu also explained that NEVs have better compatibility with autonomous driving systems than traditional internal combustion (ICE) vehicles.

“The New Energy Vehicle is very suitable for smart car applications or intelligent driving because the control chain is short,” said Liu. “The signal is an electric signal instead of an electric train that uses gas.”

Therefore, it is much easier to develop a fully autonomous EV than an ICE vehicle. If fully self-driving cars are to become not only a reality, but a mainstream technology, it will require people – and governments – to embrace electric cars first.

Creating a safer self-driving car

Autonomous driving systems are better suited for EVs than conventional combustion engine vehicles.
Credit: XPENG

Liu previously worked at American self-driving car company Cruise, a subsidiary of General Motors. When he was asked to compare the development methods of the US and China’s auto industry, he said he found that they were the same: safety is very important.

“The basic principle or philosophy that doesn’t change in different areas is safety,” Liu said. “That’s the first principle. No matter where you work, whether it’s the US, Europe, or China, or Southeast Asia, the problem is the same.”

Second to this is to ensure that the car feels safe and, to provide a smooth, comfortable experience that drivers can enjoy with peace of mind.

“We have four axes to evaluate our system. We call it CCES: convenience, compliance, efficiency, and security,” said Liu. “So you can make sure that the car is safe enough, but many breaks are difficult [are] not just [comfortable].”

For Liu, controlling the vehicle’s speed is key to ensuring both safety and comfort. To deliver this, XPENG trains its VLA 2.0 autonomous driving model to identify and adjust to real-time road conditions, as well as recognize road signs and signals, rather than relying on map data to determine vehicle behavior.

“We don’t use any kind of rules or external information to say you have to drive this speed,” said Liu. “Yes, people can control the wheel, control scrolling to set the speed limit [of the car]. The model is trying to learn what kind of normal speed people will drive in this kind of situation, because we need to make sure that the car is safe enough and again. [isn’t] very little.”

Private cars of the world (outside the US)

Although VLA 2.0 is expected to reach the global market in 2027, XPENG has not yet released details about its international rollout plan. Currently, which country will arrive first will be the most dependent on whether XPENG rules and standards can be satisfied first.

“We are trying to work in different areas, in different regions of the world, but we are working with local governments to [ensure] we meet all the requirements,” said Liu.

The US may not be one of these regions, but being locked out of that market has not slowed down XPENG’s ambitions. The company continues to invest in R&D to ensure that it can meet the diverse needs of new markets wherever they may be.

“We see the trend [of increasing EV adoption] it’s changing the whole industry. “All the cars that are selling now in China, if you don’t have an intelligent driving system, people usually won’t think about it,” said Liu. Because we believe this will be the next big thing, and this will be a big help in the next decade.

The automotive industry is developing at a rapid pace, and EV adoption and adoption is accelerating worldwide. XPENG is working to ensure that they are prepared for this future, and will be ready if the US decides to join.

This interview has been slightly edited for grammar and clarity.

Disclosure: Mashable traveled to China as a guest of XPENG.