On February 29th, Xiaopeng Motors and Volkswagen Group announced the signing of a platform and software joint development agreement (referred to as the "Joint Development Agreement") to accelerate the joint research and development of two B-class pure electric vehicles, which will be launched in 2026 for the Chinese market, with the first model being an SUV.
Industry insiders point out that this not only means that Volkswagen Group highly recognizes Xiaopeng Automobile's self-developed core technology capabilities, but also means that Volkswagen Group is accelerating its electrification layout in China.
Xiaopeng Automobile Chairman He Xiaopeng stated in the 2024 Spring Festival commencement letter that this year is the first year of accumulation and explosion of Xiaopeng's products and technology platform, and about 30 new products or facelifts are planned within 3 years. It is worth noting that Xiaopeng Automobile's losses are still expanding, with a net loss of 3.89 billion yuan in the third quarter of 2023 and 2.38 billion yuan in the same period of 2022.
Accelerate the development of B-class vehicles
According to the announcement by Xiaopeng Motors, following the relevant announcements on July 26, 2023 and December 6, 2023 regarding Volkswagen's acquisition of 4.99% of Xiaopeng Motors shares and the strategic technology cooperation framework agreement reached between the two parties, Xiaopeng Motors has signed a joint development agreement with Volkswagen Group, marking a milestone and significant progress in their strategic cooperation. This agreement will not only accelerate the joint research and development of two B-class pure electric vehicles, but also lay a solid foundation for broader and deeper strategic cooperation between the two sides.
The announcement also shows that as an important component of the joint development agreement, Xiaopeng Motors and Volkswagen have also entered into a joint procurement plan for shared components of both vehicle models and platforms. By integrating the scale advantages of both parties and relying on Volkswagen Group's world-class supply chain capabilities, the joint procurement plan aims to jointly reduce platform costs, fully leverage the synergistic effect of strategic cooperation, and enhance the product strength of the B-class pure electric vehicle jointly developed by both parties.
Volkswagen Group stated that this is an important milestone for both sides, integrating advantageous resources and deeply cultivating the vibrant Chinese market. Both parties jointly develop two intelligent connected vehicle models for the Chinese mid size car market, the first of which is an SUV, further enriching the product portfolio of the Volkswagen brand.
Volkswagen Group stated that through joint development, the product launch cycle will be significantly reduced by over 30%, and the first two models have been confirmed to be launched in 2026.
or rely on Xiaopeng's self-developed Fuyao architecture platform
The reporter noticed that this is not the first cooperation between the two sides. On December 6, 2023, Xiaopeng Motors announced that it had successfully issued 94.0793 million shares of Class A common stock to Volkswagen Finance Luxembourg S.A., a subsidiary of Volkswagen. After deducting related costs and expenses, the net proceeds of Xiaopeng Automobile are approximately 705 million US dollars, which means that Volkswagen has completed the acquisition of 4.99% of Xiaopeng Automobile's shares.
In July 2023, Xiaopeng Motors announced that it had signed a strategic technology cooperation framework agreement with Volkswagen Group. Based on their respective core competencies and Xiaopeng Motors G9 model platform, intelligent cockpit, and advanced driving assistance system software, the two parties will jointly develop two B-class electric vehicle models, with plans to launch them in the market in 2026.
On February 29th, the joint development agreement was signed, further clarifying the specific information of the two models previously collaborated with. Among them, "scale advantage", "reducing platform costs", and "intelligence" are high-frequency words announced by both parties, and both parties may rely on the Fuyao architecture released by Xiaopeng last year.
It is reported that the comprehensive intelligent evolution architecture of Fuyao includes capabilities in research and development, manufacturing, technology, intelligence, and other aspects. Among them, the X-EEA electronic and electrical architecture can shorten the intelligent iteration cycle by 30% and increase the top speed OTA rate by 300%.
Volkswagen actively expands its presence in the Chinese market
On February 29th, Volkswagen Group's Director of China, Bered, stated that "China is the largest and fastest growing electric vehicle market in the world. To explore highly promising sub markets and gain leading advantages, speed is crucial. We firmly implement the 'in China, for China' strategy, continuously expand our local product portfolio, and continuously improve our research and development capabilities.". Through cooperation with Xiaopeng Motors, we will shorten the product development cycle, improve efficiency, and optimize the cost structure
Data shows that in 2023, Volkswagen Group delivered 3.236 million vehicles in the mainland China and Hong Kong markets, a year-on-year increase of 1.6%. Among them, in the high-end market, Audi's brand sales have grown strongly, delivering a total of 729000 vehicles, a year-on-year increase of 13.5%; In terms of new energy vehicles, a total of approximately 191900 units were delivered in 2023, a year-on-year increase of 23.2%.
According to Volkswagen Group's goal, by 2027, the models produced by Volkswagen Group in China will fully cover all segmented markets, and by 2030, over 30 pure electric models will be launched.
