We recently talked about Audi Chinese partnership, but Carscoops had found the “second episode”. It turns out that Volkswagen (the parent company of the VAG Group, which includes Audi) is also looking for ways to integrate more deeply into the Chinese car market. This time we are talking about a partnership with the local Chinese manufacturer XPeng, which is known for the production of modern electric cars – for example, the XPeng P7i sedan.

It is worth reminding that Volkswagen already has several joint production facilities with local Chinese companies. Among other things, Volkswagen ID.4 X electric cars are produced in China: this is a localized model that is similar to the Volkswagen ID.4, but still differs in design and technology.


However, the “Germans” are still going further – the Volkswagen company will purchase 5% of XPeng’s shares for $700 million, which will allow it to take a seat on the board of directors. All this is necessary because the partnership with XPeng opens up new perspectives for Volkswagen: new electric vehicle technologies, renewal of its own plants. And also – very important! – access to the XNGP autonomous management system that already exists and is in use.

We will remind: the VAG group in general has certain problems with the creation of new platforms for electric vehicles, which are largely due to software problems for autonomous control systems. That is, the new partnership can help solve this problem and at the same time help in the competition against Tesla and BYD in the segment of electric cars.

Currently, the principle of development of new electric cars “China for China” is declared: that is, local Chinese models only for the Chinese market. But who knows how it will be in the future in a few years…