Volkswagen, XPENG Roll Out First Co-Developed Electric SUV in China

Wolfsburg, Germany - Volkswagen Group, an automobile manufacturer, is accelerating its “In China, for China” strategy and expanding its electric vehicle lineup with the start of series production for the ID.UNYX 08 in Hefei, eastern China. Developed jointly with Chinese NEV maker XPENG, the fully connected all-electric full-size SUV reached production readiness in just 24 months from the start of the partnership. Built specifically for the Chinese market, the model features locally developed advanced technologies such as 800V ultra-fast charging, L2 ADAS, and OTA software updates, while also reflecting Volkswagen’s core strengths in safety, quality, comfort, and durability.

The ID.UNYX 08 is scheduled to be introduced to the market in the first half of this year. As part of Volkswagen Group’s largest-ever electric vehicle product push, the company plans to launch 20 new locally developed models in China during the year.

Mr. Oliver Blume, CEO Volkswagen Group, said “Three years ago, we launched our strong China strategy – It is now unleashing its full power. The ID.UNYX 08 is the next impressive proof of this. The car was developed in China for China. With German engineering and local cutting-edge technology. Brought to market at high speed – and at attractive prices. Vehicles like the ID.UNYX 08 are part of our ambition to become the global automotive tech driver."

Mr. Ralf Brandstätter, Member of the Board of Management of Volkswagen AG responsible for China, and Chairman and CEO of Volkswagen Group China, said: " Our ´In China, for China´ strategy is delivering results. With the ID.UNYX 08, we are launching the Group's largest electric vehicle offensive in China. On average, the Volkswagen Group is launching one new electric car every two weeks this year. That's ´China Speed.´ The ID.UNYX 08 is the first Volkswagen model in a new generation of smart electric vehicles that will carry our strengths into the electric age. The car is fully tailored to Chinese customer needs, equipped with cutting-edge technology, and was developed locally in less than two years. This underscores the implementation strength of our partnership with XPENG."

Mr. He Xiaopeng, Chairman and CEO of XPENG, said: “With the ID.UNYX 08 entering series production, our cooperation with Volkswagen Group has delivered a tangible result. Built on mutual trust and close collaboration, this partnership allows both sides to combine our strengths and create long-term value. We look forward to continued cooperation and a win-win future.”

Volkswagen Group is building stronger momentum for its next phase of growth in China through its “In China, for China” strategy, focusing on faster local development, deeper integration with the domestic ecosystem, and a broader portfolio of intelligent new energy vehicles. After three years of steady transformation, the company says it is now entering a new stage of progress, supported by stronger local research and development capabilities and strategic partnerships that help speed up innovation and product delivery.

A key part of this strategy is Volkswagen’s long-term partnership with XPENG, established in 2023 to jointly advance product development and new technologies. This collaboration has already led to the development of two all-electric models, with the ID.UNYX 08 being the first and another Volkswagen EV from the partnership expected to reach the market later this year. Volkswagen highlighted that this cooperation allows both companies to combine their strengths at scale, helping the Group respond more quickly to the demands of China’s fast-changing intelligent and connected vehicle market.

Volkswagen also emphasized the role of VCTC as an important development partner for these cooperation models. While incorporating local innovations, VCTC has taken the lead in areas such as product definition, technical validation, release processes, quality standards, and driving dynamics tuning, ensuring that the vehicles still reflect Volkswagen’s core brand values of quality, safety, and driving comfort. Alongside this, VCTC, CARIAD China, and XPENG have worked together on Volkswagen Group’s first locally developed zonal electrical and electronic platform, known as the China Electronic Architecture (CEA). This new architecture is designed to support future Volkswagen models in China, including both NEVs and conventional fuel-powered vehicles, with the first CEA-based model set to launch this year.

Looking ahead, Volkswagen is preparing for a major new energy vehicle expansion in China. Building on the strategic groundwork laid in recent years, the Group plans to further accelerate its rollout of next-generation products and technologies, with more than 20 new NEV models scheduled for launch in 2026. By 2030, Volkswagen aims to introduce 50 new NEV models in the Chinese market. Through consistent strategy execution, advanced local technology, and a future-ready product lineup, the company is positioning itself to compete more aggressively in China’s NEV sector while strengthening its role in the country’s intelligent connected vehicle era.

You must be logged in to respond.