XPENG and Volkswagen recently announced that they will be entering into a new agreement. The companies are aiming to form a long-term strategic partnership, which will even bring new battery-powered electric vehicles as well.
XPENG and Volkswagen Partnership: EVs, Supply Chain, New Tech, & More
The Chinese EV maker is entering into a deal with one of the world’s biggest automobile manufacturers. These two companies are partnering up to leverage each other’s strengths and forge a long-term collaboration that is beneficial for both sides. With this strategic deal, XPENG and Volkswagen Group will also jointly develop two B-class battery electric vehicles (BEV) models for sale in the Chinese market.
B-class stands for small to mid-size cars and these will be sold in China under Volkswagen’s branding. Meanwhile, the EVs will also leverage XPENG’s G9 platform, connectivity, and ADAS software. The two BEVs are expected to start production in 2026. Apart from just building new cars, the partnership explores potential strategic cooperation in other areas as well. This includes new software technologies, future EV platforms, and supply chains.
For the agreement, XPENG and Volkswagen entered into a share purchase agreement, which will be approximately 700 million US Dollars. According to Mr. Ralf Brandstätter, Volkswagen AG Board Member for China, local partnerships are key to building its ‘in China for China strategy’. Forming strong cooperation will help speed up its plans for expansion in the region.
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