VW Teams Up With China’s Xpeng to Make Affordable Electric Cars

Published Categorized as Volkswagen No Comments on VW Teams Up With China’s Xpeng to Make Affordable Electric Cars
An Xpeng car concept image (Credits: Xpeng)

Uh oh, Volkswagen! They just lost the top spot for car sales in China after holding it for 15 years, But they’re not giving up. To bounce back, they’re teaming up with a Chinese company called Xpeng to make super affordable electric cars specifically for the Chinese market.

Here’s the plan: Volkswagen will design four new electric cars, and Xpeng will lend them their expertise in electric vehicle technology. This means these new Volkswagens will have cool features like advanced driver assistance systems and the ability to get software updates wirelessly.

Presenting The 2025 Volkswagen Tiguan What's In Store For The Land Down Under
Presenting The 2025 Volkswagen Tiguan What’s In Store For The Land Down Under (Credits: Volkswagen)

By working with Xpeng, Volkswagen hopes to cut the cost of making these new electric cars by up to 40%! That means they’ll be super affordable, which should help Volkswagen win back some happy Chinese customers.

Volkswagen is revamping its electric car strategy for China, and it involves a new partner – Xpeng, a Chinese electric vehicle company. Here’s the breakdown:

Teaming Up for Affordability:

The goal? Supercharge affordability! By working with Xpeng, Volkswagen aims to slash the cost of their new electric cars by 40% compared to current models. Xpeng’s technology is key here, as it uses fewer complex parts, bringing the price down.

New Electric Cars on the Horizon:

First up are four budget-friendly electric vehicles launching in 2026. These will be built on a platform called the China Main Platform (CMP), developed by Volkswagen and other Chinese partners.

Volkswagen also plans two mid-range electric SUVs (think more features, more comfort) co-developed with Xpeng. These are expected to arrive in 2026 as well.

(Credits: Volkswagen)
A group of Volkswagen cars standing in a band (Credits: Volkswagen)

Why the Big Shift?

Volkswagen lost the top spot for car sales in China, a market known for fierce competition in the electric car space. Affordable electric vehicles are a key to win back customers. Volkswagen acknowledges this and is working with Xpeng to adjust their costs and stay competitive. They even invested in Xpeng to speed up development.

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By Jayson O'Neil

Jayson is a car-o-holic, and you will often find him writing about cars & bikes here at DaxStreet. You can reach out to him at [email protected]

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