Volkswagen and Xpeng, China’s electric turnaround is slowing

Volkswagen had chosen Xpeng as a technology partner to regain ground in China, where local manufacturers dominate, especially in electric vehicles. The agreement calls for jointly developing new models and using software platforms from the Chinese brand.

The strategy, however, is not delivering the expected results within the planned timetable. The German group continues to lose momentum in China, while the new vehicles resulting from the partnership will arrive later than expected. Competition from BYD and other local brands therefore remains a major obstacle.