Volkswagen and XPeng Accelerate EV Development for 2026 Launch in China

The partnership aims to leverage joint procurement and advanced technologies, reducing development time by over 30% and focusing on AI investment.

Volkswagen AG and XPeng Inc expand their partnership to jointly develop two intelligent connected EV models for the Chinese market, aiming for a 2026 launch.
The collaboration will leverage joint procurement and advanced technologies to reduce development time by over 30%, with the first model being an SUV.
XPeng plans to invest $486.36 million in AI development for intelligent driving, contrasting with rivals' scaling back amid economic concerns.
The partnership aims to regain Volkswagen's lost market share in China, the world's largest EV market, by combining innovations in design, engineering, and cost efficiency.
XPeng to hire 4,000 people and release around 30 new or upgraded models in the next three years, signaling aggressive expansion and investment in AI.