Volkswagen Group and XPeng Motors have officially announced that they will jointly develop two new electric vehicle models targeted at the Chinese market, with plans to start production in China’s Hefei Province in 2026. Previously, Volkswagen had invested $700 million in XPeng Motors and acquired a 4.99% stake in the company.
This collaboration project will be implemented by Volkswagen (China) Technology Co., Ltd. (VCTC), which is located within the intelligent connected vehicle industry cluster in Hefei. The Volkswagen Anhui factory and Volkswagen (Anhui) Parts Co., Ltd. also operate within this region.
“We are very proud to announce that the collaboration project between Volkswagen and XPeng Motors is settled in Hefei,” said Ge Wan, CEO of Volkswagen Anhui. “We have established a complete automotive industry value chain in Hefei, covering R&D, supplier networks, production, and digital sales and after-sales services.”
He added, “In the future, we will further enhance our production capabilities in Hefei and develop this cluster into a powerful base for the development and production of intelligent electric vehicles specifically for the Chinese market.”