Volkswagen and Xpeng’s China recovery plan is losing momentum

Volkswagen was counting on its cooperation with Xpeng to regain competitiveness in China, its largest automotive market. The agreement includes the joint development of electric models for local customers, but the recovery is not progressing as expected.

The German automaker is facing increasingly strong domestic competition, led by BYD and other brands focused on electric vehicles. Development times and commercial results therefore make the alliance’s contribution uncertain, while Volkswagen sales in China remain under pressure.