XPeng Inc. and the Volkswagen Group have forged a groundbreaking ‘Master Agreement on Platform and Software’ strategic technical collaboration, marking a significant milestone in the automotive industry. This landmark agreement entails the joint development of two B-class battery electric vehicles (BEVs) tailored specifically for the dynamic Chinese market.
Under this agreement, the models will be meticulously crafted and marketed under the esteemed Volkswagen brand, a testament to the mutual trust and shared vision between the two industry giants. The collaboration also sets the stage for a broader and more profound strategic partnership in the future, promising an exciting era of innovation and growth.
This strategic collaboration follows Volkswagen’s strategic investment in XPENG, acquiring a 4.99% shareholding in the company. This investment not only underscores Volkswagen’s confidence in XPENG’s capabilities but also lays the foundation for a robust and enduring partnership.
As part of the Master Agreement, both companies have embarked on a joint sourcing program, pooling resources for the common parts and platform elements used in their respective vehicles. This collaborative approach not only enhances efficiency but also fosters a spirit of cooperation and shared success.
XPENG’s Smart EVs, renowned for their cutting-edge technology and superior performance, are primarily manufactured at the company’s state-of-the-art facilities in Zhaoqing and Guangzhou, Guangdong province, China. These facilities serve as the epicenter of innovation, where XPENG’s dedicated teams work tirelessly to push the boundaries of electric vehicle technology.
Mr. Xiaopeng He, Chairman, and CEO of XPENG, expressed his enthusiasm for the partnership, highlighting the unprecedented nature of the collaboration. He emphasized the commitment and trust that have been cultivated between the R&D teams of both companies over the past eight months, underscoring the foundation of success for this ambitious project. He also emphasized the synergies between Volkswagen’s renowned vehicle development and engineering capabilities and XPENG’s cutting-edge Smart EV technologies, promising to deliver the finest smart EV products to discerning Chinese consumers.
Ralf Brandstätter, a Board Member of Volkswagen AG for China, echoed Mr. He’s sentiments, emphasizing the importance of speed and agility in the rapidly evolving EV market. He emphasized Volkswagen’s commitment to expanding its development capacities in China, aligning with the company’s “in China, for China” approach, which prioritizes meeting the unique needs of Chinese customers.
