VW has signed an agreement with the Chinese company Xpeng to develop two electric models for the Chinese market.
In a statement sent to the Hong Kong Stock Exchange, where it is listed, Xpeng confirmed that the agreement also includes a joint procurement program for parts and platforms used by both companies.
“By combining VW’s renowned vehicle development and engineering capabilities with Xpeng’s smart electric vehicle technologies, we will bring the best smart electric vehicles to Chinese consumers,” said He Xiaopeng, founder and CEO of the Chinese company.
Ralf Brandstätter, VW’s representative in China, emphasized that “in the world’s largest electric vehicle market with the highest growth rates, speed is crucial when it comes to exploring promising market segments.”
“In order to steadily increase our local portfolio, we are expanding our own development capabilities” in the Asian country, he added.
The German executive also considered that the partnership with Xpeng “not only accelerates development times, but also increases efficiency and optimizes cost structures,” which means a “significant increase in competitiveness in a market environment highly sensitive to prices.”
According to the Hong Kong newspaper “South China Morning Post“, the two models will be launched in the Chinese market in 2026 under the VW brand, and the joint development will allow a 30% reduction in delivery times.
The newspaper highlighted that VW, like other Western brands, is trying to regain ground in China against the strong momentum of local brands. Last year, the German group sold 3.24 million units in China, an increase of 1.2% compared to the previous year, in a market that grew by 5.6%.
