Volkswagen, the renowned German carmaker, unveiled its strategic plans to solidify its presence in the lucrative Chinese market through two key agreements announced on Wednesday. These measures are aimed at further expanding their reach and influence in the region.
The first agreement entails a promising collaboration between the Volkswagen brand and China‘s prominent electric vehicle manufacturer, Xpeng Inc. The two companies are set to work together on the development of two new Volkswagen brand models, which will be based on the innovative Modular Electric Drive Matrix (MEB) platform. These cutting-edge models are expected to be unveiled and rolled out to consumers starting in 2026. Notably, the vehicles will incorporate Xpeng’s advanced autonomous driving software, adding another dimension of technological excellence to the partnership.
Furthermore, Volkswagen has devised additional plans to strengthen its ties with China’s heavyweight automotive firm, SAIC (Shanghai Automotive Industry Corporation). Through its subsidiary, Audi, Volkswagen aims to foster a new era of collaboration with SAIC, focusing on jointly developing innovative car models and a novel automotive platform. However, specific details and a timeline for these endeavors have not yet been disclosed by the companies.
In a remarkable move to solidify their partnership with Xpeng, Volkswagen is making a significant investment of approximately USD 700 million in the Chinese electric vehicle manufacturer. As part of this financial commitment, Volkswagen will also acquire a 4.99% stake in Xpeng Inc through a capital increase.
