Tesla FSD Beware: XPENG Autonomous Driving Is Already Ahead In China

LifestyleCars & BikesTesla FSD Beware: XPENG Autonomous Driving Is Already Ahead In ChinaByJames Morris,Contributor.Forbes contributors publish independent expert analyses and insights. James Morris covers the rapidly growing world of electric vehicles.Follow AuthorApr 25, 2026, 04:53pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.The latest generation of XPENG's P7 can be equipped with VLA 2.0 autonomous driving capabilities.James MorrisThe 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 ChinaHaving 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 Ch...