Volkswagen and Xpeng’s EV alliance shakes up China’s auto industry
China's electric vehicle (EV) market has seen a significant shift, with BYD surpassing Tesla as the global leader in EV sales by the end of 2023. Meanwhile, a strategic partnership between Xpeng and the Volkswagen Group is set to reshape the stock market today. The two automakers have agreed to collaborate on an EV platform and software, with Volkswagen acquiring a 5% stake in Xpeng in 2022 worth around $700 million. This alliance aims to boost competitiveness in China's thriving stock market today. As part of this partnership, Volkswagen will sell two B-segment EVs based on Xpeng's G9 platform starting in 2026. These vehicles will leverage Xpeng's connectivity and advanced driver assistance systems. The first fruit of their collaboration, the ID.UNYX 08 SUV, is planned for production in 2026. This model, developed through the Volkswagen Anhui joint venture, will feature 800-volt fast charging and an impressive range of up to 700 km. Additionally, the companies will jointly source common parts to lower costs for two China-specific midsize EVs. The partnership between Xpeng and the Volkswagen Group is expected to bring innovative and competitive EVs to the stock market today, leveraging each other's strengths. This collaboration opens up new opportunities for both companies in the highly competitive Chinese EV landscape.
