Volkswagen and XPeng's first collaborative model has begun mass production

According to foreign media reports, Volkswagen has announced that it has begun mass production of its first model jointly developed with XPeng (09868.HK). Currently, Volkswagen is attempting to re-enter the Chinese market, planning to launch more than 20 new models this year, including a full-size electric SUV, the ID. UNYX 08.

The ID.UNYX08 is the result of the technical partnership established between Volkswagen and XPeng in 2023 and is set to be launched in the first half of this year, symbolizing Volkswagen's strategic restructuring in the Chinese market, prioritizing localized development and accelerating product replacement cycles. XPeng will provide the new model with autonomous driving systems and artificial intelligence chips, while the second electric vehicle jointly developed by the two companies is expected to be launched later this year.

Both new models will be produced at Volkswagen's factory in Hefei, which has an annual production capacity of 350,000 vehicles and is currently also producing the Cupra Tavascan SUV for export to Europe