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." Xpeng's new L03 is a sleek electric sedan - and part of the company's 'In Europe, for Europe' stratgey. /Natalie Carney/CGTN '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