XPENG & Volkswagen Group to Jointly Develop two EVs for the Chinese Market

XPeng Inc. and the Volkswagen Group have entered into a 'Master Agreement on Platform and Software' strategic technical collaboration. This involves the joint development of two B-class battery electric vehicles (BEVs) for the Chinese market.

The models will be developed and sold under the Volkswagen brand.

The deal also pave the way for an extended and deeper strategic collaboration in the future.

It follows Volkswagen’s share purchase of 4.99% shareholding in XPENG.

As part of the Master Agreement, both parties have also entered into a joint sourcing program for the common parts of vehicles and platform that used by both parties. 

XPENG’s Smart EVs are mainly manufactured at its plants in Zhaoqing and Guangzhou, Guangdong province in China. 

Mr. Xiaopeng He, Chairman and CEO of XPENG., says: “There is no precedent of the strategic partnership between Volkswagen and XPENG. However, the commitment by both companies and the trust built between our R&D teams over the past eight months have made the success of our project possible. Combining Volkswagen's highly reputable vehicle development and engineering capability with XPENG's Smart EV technologies, we will deliver the best smart EV products to Chinese consumers.” 

Ralf Brandstätter, Board Member of Volkswagen AG for China, adds: “In the world's largest and fastest-growing EV market, speed is fundamental when it comes to tapping into promising market segments. To constantly increase our local portfolio, we are expanding our own development capacities in China. Thereby, consistently following our strong “in China, for China” approach focusing on the specific needs of the Chinese customers.”

XPENG is headquartered in Guangzhou, China, with main offices in Beijing, Shanghai, Silicon Valley, San Diego and Amsterdam.