Xpeng’s Vice President Gu emphasized that the forthcoming electric vehicles, developed in collaboration with Volkswagen, will significantly differ from those currently offered by either company. He highlighted that these new models are expected to feature enhanced range, faster charging capabilities, more advanced autonomous driving technology, and additional luxury features—all at competitive prices.
China remains a crucial market for Volkswagen, with the German automaker delivering 3.2 million vehicles in the country last year, surpassing its total sales in Western Europe. However, Volkswagen, like many traditional foreign automakers, faces challenges in China as the market rapidly transitions to battery-only and hybrid vehicles. The company’s deliveries in China dropped by 19.3% in the second quarter compared to the previous year.
In contrast, Xpeng experienced a 30% year-on-year increase in deliveries during the same period, with over 30,200 vehicles sold. Despite this growth, Xpeng still trails behind several of its Chinese competitors.
Looking beyond China, Xpeng is aggressively expanding its global footprint. In the second quarter, the company reported that its overseas sales accounted for over 10% of total revenue for the first time. Xpeng CEO He Xiaoping recently disclosed that the company is in the early stages of selecting a European Union site for future production. However, Gu indicated that localization in Southeast Asia would likely occur before any European operations.
Xpeng’s international expansion continues with recent launches in Thailand, Hong Kong, Macao, and the upcoming entry into Malaysia and Singapore. The company also plans to establish a presence in Australia, New Zealand, the U.K., and Ireland by the end of the year.
Xpeng and Volkswagen’s partnership extends beyond vehicle development. The two companies have initiated a joint sourcing program for auto parts and are collaborating on design and technology. Xpeng has also been investing in robotics since 2020, with a focus on developing humanlike robots for factory tasks, although their integration into Volkswagen’s supply chains is not yet imminent.
