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 % stake within the Chinese language EV maker through a capital improve and is getting an observer board seat, VW stated in a press release 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 improvement location outdoors Wolfsburg. The midsize EVs will probably be rolled out in China beginning in 2026.
Xpeng is without doubt one of the smaller gamers in China’s EV house. Its gross sales dropped by 40 % within the first half, however it’s betting on its newly launched G6 crossover, priced 20 % beneath Tesla’s Mannequin Y and geared up with the corporate’s newest software program, to spice up development.
Xpeng’s XNGP superior driver help system, upgraded in March this yr, is much 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 accessible 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 wanting 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 stated.
Each agreements are for future joint improvement of recent native platforms for the following era of clever, totally linked autos, VW Group stated.
VW Group China chief Ralf Brandstaetter stated the partnerships will considerably optimize improvement and procurement prices.