A recently released demonstration video by Boston Dynamics is making the rounds in the robotics industry, showcasing its humanoid robot, Atlas, in a festive setting. Without the constraints of bulky cables, Atlas, dressed in Christmas attire, performs impressive moves, including squats, backward leaps, and a near-perfect backflip.
While Boston Dynamics has yet to reveal the price of the electric version of Atlas, an industry insider told 36Kr that the estimated cost is around RMB 1 million (USD 140,000).
On the same day the Atlas video was released, the Chinese robotics market responded. Engine AI unveiled its humanoid robot, PM01, with a starting price of just RMB 88,000 (USD 12,320).
Engine AI’s PM01 reflects a broader trend of decreasing costs in humanoid robots. In May 2024, Unitree Robotics launched its Unitree G1, priced at RMB 99,000 (USD 13,860), breaking the RMB 100,000 threshold. Historically, high manufacturing costs have been a significant barrier to the mass production of humanoid robots. For example, Xiaomi introduced a humanoid robot in 2022 with a per-unit cost exceeding RMB 600,000 (USD 84,000), which made large-scale production impractical. However, as more startups enter the industry, the landscape is shifting.
Currently, the humanoid robot market remains in its early stages, with fragmented customer bases and no standardized pricing. Offering low prices has become a key strategy to attract customers and drive product shipments. According to an industry source cited by 36Kr, price wars in the humanoid robot market have been on the rise since 2024. The source noted that, by pricing a product 50% lower than competitors, his company secured a surge in orders and expects to sell several hundred robots in 2025, significantly outpacing competitors in sales volume.
This trend toward lower pricing is partially driven by investor pressure. “Primary market funding is consolidating into a few enterprises. Only by increasing sales can companies attract investors,” the source said.
Humanoid robots require thousands of components, from lead screws to joint modules, and current assembly processes remain labor-intensive. A technician can assemble just one robot per day, with assembly time increasing to four days if the robot has more than 200 cables. While outsourcing assembly can save time, it drives up costs. As a result, companies are focusing on reducing component expenses as an alternative.
Light detection and ranging (LiDAR) systems exemplify this cost reduction trend. RoboSense’s mid-2024 financial report highlighted a 1,600-unit year-on-year increase in LiDAR sales for robotics and other applications, even as revenue fell by 11.9% due to the rising proportion of low-cost products. However, not all components lend themselves to cost-cutting. Joint modules, which account for 30–60% of a robot’s bill of materials, remain expensive due to the high cost of lead screw materials.
To address these challenges, some robotics companies are developing components in-house. He Liang, CEO of Yunmu Zhizao, said his company is working on in-house joint motors, hydraulic power systems, and dexterous hands to reduce costs by 30–40%. Similarly, Unitree Robotics and Deep Robotics began developing their own motors years ago to lower costs, while Inspire-Robots has started purchasing raw materials and machinery to manufacture its own lead screws.
Despite these efforts, humanoid robots still face significant functional limitations, with stable walking remaining an advanced capability for most models. High-end robots with advanced functionalities for research and industrial applications often cost upwards of seven figures in RMB. By contrast, simplified models, typically priced below RMB 100,000, have fewer joints and limited interfaces.
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Sales volumes remain low due to limited application scenarios and heightened investor demands. Earlier in 2024, prototypes capable of walking were sufficient to attract funding. However, by midyear, investors prioritized robots capable of performing complex tasks and leaned toward companies with stronger financial backing. This dynamic forces smaller firms to quickly generate commercial revenue or risk being eliminated. At the same time, increasing competition has shifted market power to buyers, further driving down prices.
Inspire-Robots’ marketing director, Fang Hainan, revealed that his company reduced the price of its dexterous hand by RMB 15,000 (USD 2,100) in early 2024, resulting in sales of nearly 2,000 units this year. Beyond discounts, robotics companies are diversifying revenue streams by selling self-developed components. Unitree Robotics, for example, secured contracts with universities for modular materials and robotic arms, while Deep Robotics offered discounts on quadruped robots and integrated joints during the Singles’ Day shopping festival.
Under dual pressures from cautious investors and a demanding market, price reductions have transitioned from a stopgap tactic to a core strategy for increasing sales and securing funding. While not all robotics companies are eager to engage in price wars, the early-stage nature of the market leaves room for growth. Many companies hope that intense price competition can be delayed, allowing all players an opportunity to establish themselves.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Tian Zhe for 36Kr.