By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    U.S. to cut tariffs on small packages from China to as low as 30% – National
    U.S. to cut tariffs on small packages from China to as low as 30% – National
    May 14, 2025
    A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
    A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
    May 14, 2025
    In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
    In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
    May 14, 2025
    Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
    Ousted Bangladesh PM Hasina’s party barred from election as party registration suspended
    May 14, 2025
    Cassandra Ventura testifies, tells jury freak offs became a job
    Cassandra Ventura testifies, tells jury freak offs became a job
    May 13, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    eToro prices IPO at , eyes Nasdaq amid shifting sentiment
    eToro prices IPO at $52, eyes Nasdaq amid shifting sentiment
    May 14, 2025
    Bitcoin (BTC) Still Dominates the Market With 3,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
    Bitcoin (BTC) Still Dominates the Market With $103,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
    May 14, 2025
    Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above alt=
    Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above $0.2?
    May 14, 2025
    Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
    Cantor Equity Partners (CEP) News: 4,812 Bitcoin Purchased
    May 14, 2025
    BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
    BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
    May 14, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Volkswagen’s XPeng deal sets example for EV alliance between the West and China
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Technology > Volkswagen’s XPeng deal sets example for EV alliance between the West and China
Volkswagen’s XPeng deal sets example for EV alliance between the West and China
Technology

Volkswagen’s XPeng deal sets example for EV alliance between the West and China

Published July 28, 2023
Share
3 Min Read
SHARE

The major news from China’s auto industry this week is Volkswagen’s $700 million investment in the country’s electric vehicle startup, XPeng. This partnership has the potential to set a precedent for Western automakers seeking to leverage Chinese firms for their EV expertise, while their Chinese counterparts can benefit from their foreign allies’ global distribution.

The agreement involves the production of two new battery-powered models under the Volkswagen brand utilizing some of XPeng’s key technologies. These include XPeng’s vehicle-to-anything (V2X) and XNGP solutions, its ADAS system comparable to Tesla’s FSD system, as well as its battery chassis architecture.

Although XPeng’s sales lag well behind those of Tesla and local EV giant BYD, it has earned a reputation for its focus on advanced technologies. The Guangzhou-based automaker has sought to differentiate itself in the heated EV race by investing heavily in its own proprietary autonomous vehicle technology, while its competitors often choose to partner with AV startups.

By acquiring a 5% stake in XPeng, Volkswagen gains access to not only its AV expertise but also its battery and smart cabin technology, something that software-focused AV companies obviously can’t offer.

For XPeng, the benefits of this partnership lie in adoption. Its customer base is still limited, accounting for just a 2.1% share of China’s new energy vehicle (including hybrids) market in 2022, according to the country’s passenger car industry association. Meanwhile, Volkswagen’s two local joint ventures collectively accounted for a whopping 15% of China’s retail auto market last year.

This means the partnership can help scale XPeng’s AV systems to more users, collect more data, and ultimately improve its algorithms, creating a data feedback loop that Tesla has long enjoyed — if the two new models prove successful. Volkswagen hasn’t had much luck with plug-ins in China. Last year, its EVs represented only about 3% of the country’s new energy vehicle market.

Additionally, this deal could boost XPeng’s global reach. According to a note from Morgan Stanley analyst Tim Hsiao to investors, this type of cooperation is “expected to lay the foundation for Chinese carmakers’ overseas expansion,” and in XPeng’s case “could open up more opportunities for future collaboration with the Volkswagen Group in China and around the world.”

XPeng and its archrival Nio have been aggressively pursuing overseas expansion, though their global businesses have yet to take off meaningfully. If the two jointly developed models prove successful, it is conceivable that Volkswagen will introduce them to other markets. For the time being, this investment appears to be a win-win situation, and other Chinese EV makers and global OEMs may follow suit.

#Volkswagens #XPeng #deal #sets #alliance #West #China

TAGGED:allianceChinadealsetsVolkswagensWestXPeng
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Amanda Holden, 52, showcases her age-defying physique in a TINY black bikini as she sizzles in the shower in latest racy holiday snap Amanda Holden, 52, showcases her age-defying physique in a TINY black bikini as she sizzles in the shower in latest racy holiday snap
Next Article Colts owner Jim Irsay claims ‘bad faith’ RB comments weren’t directed at Jonathan Taylor Colts owner Jim Irsay claims ‘bad faith’ RB comments weren’t directed at Jonathan Taylor
- Advertisement -

Latest Post

eToro prices IPO at , eyes Nasdaq amid shifting sentiment
eToro prices IPO at $52, eyes Nasdaq amid shifting sentiment
Cryptocurrency
U.S. to cut tariffs on small packages from China to as low as 30% – National
U.S. to cut tariffs on small packages from China to as low as 30% – National
World News
Bitcoin (BTC) Still Dominates the Market With 3,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
Bitcoin (BTC) Still Dominates the Market With $103,000 Price Tag, But Investors Are Rushing to Get in On Ruvi AI (RUVI) Thanks to 100% Early Bonus and 20,000% Price Prediction
Cryptocurrency
A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
A book points to Biden’s decline and Democrats’ cowardice: 6 takeaways
World News
Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above alt=
Dogecoin Price Completes Weekly Close Above Pre-Halving Highs, Next Stop Above $0.2?
Cryptocurrency
In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
In one Indian city, reflective paint and bus stop sprinklers offer relief from killer heat
World News
- Advertisement -

You Might Also Like

Disney’s British Subsidiary Makes a Comeback with West End Magic
Business

Disney’s British Subsidiary Makes a Comeback with West End Magic

August 20, 2023
Forget China, The Hot Money in Mining Is Suddenly Saudi
Business

Forget China, The Hot Money in Mining Is Suddenly Saudi

July 31, 2023
An AI-generated ‘South Park’ episode, Microsoft’s security woes, and Tesla’s first Cybertruck build
Technology

An AI-generated ‘South Park’ episode, Microsoft’s security woes, and Tesla’s first Cybertruck build

July 23, 2023
How Private-Equity Deal Making Unfolded in the First Half of 2023 in Four Charts
Business

How Private-Equity Deal Making Unfolded in the First Half of 2023 in Four Charts

August 20, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?