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BEIJING, 3 August 2023: In an effort to solidify its position in the fast-growing e-mobility market in China, the Volkswagen Group is forging strategic partnerships with local automakers XPENG and SAIC. These collaborations aim to accelerate the group’s local electrification strategy and tap into the potential of China’s dynamic e-mobility market.
Volkswagen Brand and XPENG Partnership
The Volkswagen brand has entered into a long-term technological framework agreement with XPENG. This collaboration will focus on jointly developing two electric models for the midsize segment in the Chinese market. These China-specific vehicles will complement the existing MEB product portfolio and are scheduled to be launched in 2026. Additionally, the Volkswagen Group will invest approximately USD 700m in XPENG through a capital increase, securing a 4.99 percent stake in the company.
Audi and SAIC Joint Venture
Audi has signed a strategic memorandum with its Chinese joint venture partner SAIC to expand their existing cooperation. The goal is to jointly develop intelligent, fully connected electric vehicles (ICV) for the Chinese market, with an initial focus on segments where Audi does not currently have a presence. The jointly developed e-models will offer state-of-the-art software and hardware, providing Chinese customers with an intuitive, connected digital experience.
Volkswagen Group’s “in China for China” Strategy
Both cooperations align with the Volkswagen Group’s “in China for China” strategy, aiming to address market trends proactively and leverage the Chinese market’s growth dynamics and innovation strength. To bolster its capabilities, the group has established the Volkswagen Group China Technology Company (VCTC), serving as the development partner for XPENG. With over 2,000 experts working on new intelligent, fully connected electric vehicles, VCTC is the Group’s largest development location outside Wolfsburg.
Conclusion
The strategic partnerships between the Volkswagen Group and XPENG, as well as Audi and SAIC, mark significant steps in accelerating the Group’s electrification efforts and expanding its product portfolio for the fast-growing e-mobility market in China. By focusing on the specific needs of Chinese customers and leveraging the strengths of local partners, the Volkswagen Group aims to play a leading role in the era of intelligent connected vehicles in China.
