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VW’s China reboot off to a slow start

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VW’s China reboot off to a slow start

Volkswagen's restart in China utilising technology from its local partner Xpeng is reportedly off to a very rocky start. According to a news agency report, VW sold less than 10 percent of its targeted volume for the first jointly developed model, the VW ID.UNYX 08. Additionally, VW is said to have once sought an alliance with BYD or Leapmotor.

As early as July 2023, VW and Xpeng entered into a collaboration, which also included an investment by the Wolfsburg-based company in the Chinese automaker of around 5 per cent. In April of this year, Volkswagen then launched its first model based on Xpeng technology onto the Chinese market: the all-electric SUV VW ID. UNYX 08, which uses Xpeng’s Edward platform, along with cockpit systems, smart driving technologies, and AI chips. In September, the technically related all-electric sedan VW ID. UNYX 09 followed. Soon, the first VW electric vehicles in China based on the newly developed China Electronic Architecture (CEA), co-developed with Xpeng, are also expected to arrive.

However, a report by news agency Reuters now reveals that the VW ID. UNYX 08, launched as a beacon of hope for a fresh start in China, has so far turned out to be a damp squib. According to data from consulting firm ThinkerCar , the VW ID. UNYX 08 sold an average of 267 units per month between April and August. Volkswagen had reportedly originally planned to sell 3,622 units per month for this year. 4 per cent of the planned sales.


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