XPENG, Volkswagen Forge Strategic Tech Alliance

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XPENG Inc. and the Volkswagen Group have officially entered into a comprehensive Master Agreement to collaborate on platform and software technology, alongside a Joint Sourcing Program aimed at cost reduction. This partnership signifies a crucial advancement in their strategic relationship, building on previous agreements and Volkswagen’s 4.99% share purchase in XPENG. Located in Guangzhou, China, XPENG is a prominent Smart Electric Vehicle (EV) manufacturer, while Volkswagen stands as a global leader in the automotive sector.

The collaboration is focused on the joint development of B-class Battery Electric Vehicles (BEVs) under the Volkswagen brand, marking a significant milestone in project development. The Master Agreement and Joint Sourcing Program are designed to leverage the strengths of both companies, aiming to enhance the competitiveness and innovation of their B-class BEVs through shared resources and Volkswagen’s renowned supply chain expertise.

Mr. Xiaopeng He, Chairman, and CEO of XPENG, highlighted the unique nature of this partnership, emphasizing the synergy between Volkswagen’s vehicle development prowess and XPENG’s Smart EV technologies. He expressed confidence in the partnership’s potential to deliver superior Smart EV products to the Chinese market, thanks to the mutual commitment and collaborative efforts of both parties.

Ralf Brandst√§tter, a Board Member of Volkswagen AG for China, stressed the importance of speed and efficiency in the rapidly growing EV market. By combining Volkswagen‘s development capabilities in China with XPENG’s innovative technologies, the partnership aims to expedite development times, improve efficiency, and optimize cost structures, thereby enhancing market competitiveness.

The collaboration not only signifies a strategic move to address the specific needs of Chinese customers but also represents a significant step towards innovative Smart EV development, aligning with both companies’ long-term goals.


XPENG, a leader in China’s Smart EV market, focuses on the design, development, manufacturing, and marketing of Smart EVs. With a mission to revolutionize Smart EV transformation through technology, XPENG develops its advanced driver-assistance systems, in-car intelligent operating systems, and core vehicle systems in-house. Headquartered in Guangzhou, China, XPENG’s manufacturing bases are located in Zhaoqing and Guangzhou, Guangdong province.

About Volkswagen Group China

Volkswagen Group, a pioneer in China’s automobile industry since 1978, has established itself as a key international partner. With ventures including SAIC Volkswagen and FAW-Volkswagen, as well as a focus on new energy and luxury battery electric vehicles, Volkswagen Group’s presence in China is comprehensive. In 2023, Volkswagen Group China, alongside its joint venture partners, delivered over 3.23 million vehicles in China, employing more than 90,000 people.

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