Volkswagen & Audi Forge Strategic E-Mobility Partnerships In China With XPENG And SAIC

Volkswagen and Audi, two brands under the Volkswagen Group, have recently entered into strategic cooperations with Chinese automakers to accelerate their presence in China's e-mobility market. The Volkswagen brand has signed a technological framework agreement with XPENG, a major manufacturer of intelligent electric cars in China, to jointly develop two electric vehicle models for the mid-size segment by 2026. As part of this collaboration, the Volkswagen Group will invest approximately US$700 million in XPENG, acquiring a 4.99 per cent stake, and gaining a seat on XPENG's board of directors. This move strengthens the Group's "in China for China" strategy and aligns with the preferences of Chinese customers.

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Audi and its Chinese partner SAIC have signed a strategic memorandum to expand their existing cooperation in the development of intelligent, fully connected electric vehicles (ICV) for the Chinese market. The joint development efforts will focus on introducing electric models in segments where Audi currently has no presence in China.

These strategic partnerships emphasize the Group's commitment to localizing its development and production capacities to tap into emerging customer segments and leverage the growing e-mobility market in China. The newly established Volkswagen Group China Technology Company will play a role in this venture, with over 2,000 development and procurement experts working on new intelligent, fully connected electric vehicles. Furthermore, the Group is expanding its Hefei plant in China into a production, development, and innovation hub to bolster its e-mobility initiatives further. The significance of these partnerships lies not only in strengthening the Group's market position in China but also in enhancing its capabilities to meet the evolving demands of Chinese consumers.