The Chinese car market has become incredibly competitive, and that battle is starting to be exported to other markets, including Europe. Automakers from China must find ways to differentiate themselves. In March 2026, XPENG launched its VLA 2.0, an autonomous driving system that isn’t just in public testing phase like Tesla’s FSD, but a full shipping product. It’s already reported to be a major factor boosting sales. Could this have a similar impact in Europe, where emotional brand attachment and heritage are much more important factors? VLA 2.0: Driving XPENG Sales In China Having experienced VLA 2.0 in action at the Beijing Auto Show, with myself in the driving seat of an XPENG P7 Ultra, I can confirm that it is very capable. It drove confidently around the urban streets of the city, navigated traffic, and coped with unpredictable motorbikes, narrow streets, and complicated junctions faultlessly. I’ve also experienced Tesla FSD as a passenger, which is impressive too, but VLA 2.0 had a more human-like operation, even pulling across lanes when a truck at a junction looked like it might try to enter the lane we were in. No human interventions were required at all across over 40 minutes of driving, apart from exiting and entering a barrier-controlled car park. “Our best feature is autonomous driving,” says He Xiaopeng, Chairman & CEO, XPENG. “VLA 2.0 has had very good results. The first generation was already the top autonomous driving system in China. With our latest generation, we are the best of the best. Our new generation can run everywhere, and even your mother is safe driving VLA 2.0. Our consumers use it almost 120% more than the previous generation. Next year, we also want to go global, including European and other countries. We are testing VLA in Europe. Maybe next