From CNBC: 2024-08-27 05:11:40

Volkswagen and Xpeng are collaborating to create electric cars for China. Volkswagen invested $700 million in Xpeng to jointly develop two electric cars by 2026. Xpeng’s driver-assist technology is highly regarded in China, surpassing Tesla’s, but Volkswagen is facing challenges in the Chinese market due to shifting preferences toward electric and hybrid vehicles.

Xpeng’s overseas sales are increasing, with plans to enter more countries. The Chinese automaker is considering sites in the European Union for localizing production. The startup also aims to expand into Southeast Asia and reach 40 countries and regions by the end of the year. Additionally, Xpeng is launching in Thailand, Hong Kong, Macao, Malaysia, Singapore, Australia, New Zealand, the U.K., and Ireland.

Xpeng staff are learning from Volkswagen through design and technology visits. The companies have a joint sourcing program for auto parts, and Xpeng has invested in robotics for more efficient manufacturing. The Chinese company is focusing on developing humanoid robots for factory tasks but indicated it is too early to implement them in Volkswagen-related supply chains.

Read more: Volkswagen China is spending lots of time at Xpeng to make new EVs