Xpeng will explore the robotaxi business in the second half of 2022, and the subsidiary is likely to be the operating entity for the business.

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Xpeng has set up a new subsidiary focused on autonomous driving, seemingly to pave the way for the development of its robotaxi business.

Guangzhou Peng Xu Autonomous Driving Technology Co Ltd (广州鹏煦自动驾驶科技有限公司) was officially established on February 14 with a registered capital of 10 million yuan ($1.58 million), information from data provider Tianyancha shows.

The company's legal representative is Xpeng co-founder and president Henry Xia, and its industry is "research and experimental development."

The company's business scope includes artificial intelligence software development, data processing and storage, natural science research and experimental development, technology development, and technology consulting.

The company is 100 percent owned by Guangdong Xiaopeng Motors Technology Co Ltd.

It is impossible to tell from Tianyancha's information what Xpeng's purpose is in setting up the subsidiary, though based on previously known information, it is possible that the subsidiary could become the operating entity for Xpeng's robotaxi business.

Xpeng said in a conference call after announcing its third-quarter earnings on November 23 last year that it will explore the robotaxi business in the second half of 2022 to accelerate the commercialization of smart driving technology.

The robotaxi business will first be piloted in Guangzhou and will start with XPilot 3.5 and gradually transition to XPilot 4.0.

Xpeng's strategic goal is to improve the robustness and safety of autonomous driving algorithms through generalized scenario operations in the short term, the company said at the time.

The company believes it can create significant business value by revolutionizing the user travel experience through the ability to mass-produce pre-installed robotaxi software and hardware, as well as through future partnerships with various mobility operators, it said.