- Joint development for EVs for China

- New models to be added to existing portfolio

The Volkswagen Group is looking to expand its local presence in the ever-growing EV space in China. The brand, in fact, has just announced that it is expanding its partnership with local Chinese brands to tap into new market segments, thereby leveraging the potential of China’s growing e-mobility market.

China-specific vehicles in development

According to VW, they have concluded a technological framework agreement with XPENG. The initial stage of the co-operation will provide for the joint development of two VW-branded electric models for the mid-size segment in the Chinese market. The China-specific vehicles will supplement the MEB product portfolio and are to be rolled out in 2026 in China. Audi, meanwhile, has signed a strategic memorandum with its Chinese joint venture partner, SAIC, to further expand existing cooperation. Joint development activities are to extend the portfolio of fully connected electric vehicles on offer in the premium segment. It is planned to start with electric models in a segment where Audi does not as yet have a presence in China.

Evaluating market trends in China

Both agreements also envisage a planned, future joint development of new local platforms for the next generation of fully connected vehicles. The co-operations tie in with the VW Group’s ‘in China for China’ strategy to address buying trends in China at an early stage and leverage the growth of the Chinese market more effectively. In order to speed up decision-making and development processes in the region, Volkswagen is also strengthening its local capacities for e-mobility and autonomous driving. Finally, Volkswagen is expanding its Hefei plant in east China’s Anhui province into an improved production, development, and innovation hub. Production at Anhui’s new Volkswagen vehicle plant will commence this year.