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 …
