Volkswagen and Xpeng: the China gamble has yet to deliver results

Volkswagen has turned to Xpeng to regain ground in China’s electric-car market, investing in cooperation with the local automaker and in the development of new models. The aim is to use Chinese software and technology to speed up the German brand’s product offensive.

According to Reuters, however, the plan has so far failed to produce the expected turnaround. In China, Volkswagen faces local rivals that innovate quickly, competitive pricing and consumers increasingly focused on connected electric vehicles. The first models resulting from the partnership are expected from 2026.