Volkswagen struggles in China as Xpeng partnership fails to deliver

Volkswagen chose Xpeng as a key ally to rebuild its position in China, a crucial market that has become increasingly difficult for foreign brands. The goal was to combine local expertise with electric-car technology and recover ground against Chinese rivals.

So far, however, the plan has not changed the trend. Domestic competition remains fierce and Chinese buyers are increasingly favoring homegrown brands. For Volkswagen, the challenge remains adapting products and software to a market that is changing quickly.