Volkswagen leans on Xpeng to mount EV comeback in China

German automaker hopes Chinese tech will drive 'innovations faster'

Volkswagen showcases its vehicles at an auto show in Beijing this past April. (Photo by Tomoko Wakasugi)

TOMOKO WAKASUGI and EIKI HAYASHI, Nikkei staff writers

June 12, 2024 01:48 JST

SHANGHAI/FRANKFURT, Germany -- After falling behind in China's increasingly electrified auto market, Volkswagen Group is trying to catch up through a partnership with Chinese electric-vehicle maker Xpeng.

This year marks the 40th anniversary of a Volkswagen joint venture with Shanghai's SAIC Motor. As demand for gasoline vehicles drops off, Volkswagen faces a turning point in which the Chinese side becomes the source of new technology instead of the other way around.