Volkswagen to Invest in Xpeng
The German carmaker Volkswagen plans to invest about $ 700 million for a stake of 4.99 percent in Xpeng and an observer’s board seat as well.
Mid-sized EVs by 2026
Xpeng and VW, both companies plan on rolling out two Volkswagen-badged mid-sized EVs by 2026 in China, according to their technological framework agreement. The two new EV models will target China’s middle-class segment and will be jointly developed for VW after the deal with Xpeng is signed. This step was taken by the German auto giant as it fights to halt a sales slide in the Chinese market.
VW’s Growth in China
This allows the Volkswagen Group to expand its position in China, by tapping new customer segments and bringing new fully intelligent and connected electric vehicles to the Chinese market more quickly. They also aim at seizing the huge Chinese market growth potential expected by 2025.
VW understands the urgent need to catch up with global and Chinese rivals in the big Chinese EV market. Working with partners with advanced technologies can offer Volkswagen a fast track to chase its growth of EV business in China.
Read More:- New Volkswagen ID.2 Affordable Electric Car Unveiled
