Volkswagen Group plans to speculate $700 million in Xpeng and collectively develop electrical autos in China because the German automaker fights to halt a gross sales slide in its most essential market.
VW Group will ultimately maintain a 4.99 p.c stake within the Chinese EV maker through a capital enhance and is getting an observer board seat, VW mentioned in an announcement on Wednesday.
VW Group and Xpeng will develop two VW model battery-powered fashions on the MEB platform at VW’s new know-how middle in Hefei, the automaker’s largest growth location outdoors Wolfsburg. The midsize EVs will likely be rolled out in China beginning in 2026.
Xpeng is likely one of the smaller gamers in China’s EV area. Its gross sales dropped by 40 p.c within the first half, however it’s betting on its newly launched G6 crossover, priced 20 p.c under Tesla’s Model Y and outfitted with the corporate’s newest software program, to spice up progress.
Xpeng’s XNGP superior driver help system, upgraded in March this 12 months, is just like Tesla’s Full Self-Driving know-how that the U.S. automaker rolled out 4 years in the past however has but to make obtainable in China.
Audi, SAIC tie-up
VW Group additionally introduced plans for additional cooperation between its subsidiary Audi and SAIC Motor together with collectively developed fashions and a brand new platform, however fell in need of offering particulars or a timeline.
Audi’s partnership with SAIC will cowl premium EVs and begin with fashions in a phase the place the model isn’t but represented in China, the automaker mentioned.
Both agreements are for future joint growth of recent native platforms for the subsequent technology of clever, absolutely related autos, VW Group mentioned.
VW Group China chief Ralf Brandstaetter mentioned the partnerships will considerably optimize growth and procurement prices.