Volkswagen and venture partner SAIC, the parent company of MG Motors and LDV, have teamed up with EV startup Xpeng to build two new EVs for China.
The German carmaker took a 4.99 per cent stake ($NZ1.13 billion) in Xpeng which has agreed to share its software expertise and autonomous driving knowledge as part of the deal.
Volkswagen plans to roll out two new models for the middle-class segment in China from 2026 as the brand looks to fill a gap in its local line-up, reports Reuters.
The new EVs will reportedly be based on the same platform that underpins the Xpeng G9, a midsize SUV.
“The Volkswagen Group and XPENG each bring in highly complementary strengths into this long-term strategic partnership. We will share Smart EV technologies and world-class design and engineering capability with each other and learn from each other,” said Mr. Xiaopeng He, Chairman and CEO of Xpeng.
A similar move was made by VW’s subsidiary Audi earlier this week, which confirmed a separate deal with SAIC to build EVs for China on two of its IM Motors platforms.