Xpeng Motors officially announced that Volkswagen has completed its shareholding. The cooperation between Xpeng and Volkswagen is not only a strategic alliance between the two car companies, but also a major breakthrough in China's smart electric vehicle industry. This cooperation is of far-reaching significance to both Xpeng and Volkswagen.
First, why did Volkswagen invest in Xpeng Motors?What does this mean?
1. Volkswagen hopes to use Xpeng's technological advantages to enhance its competitiveness in electric vehicles in the Chinese market. Although Volkswagen has its own electric vehicle platform, MEB, there are still many gaps in intelligence and the Internet. Xpeng Motors is in a leading position in these areas and can provide Volkswagen with technical support and cooperation opportunities.
The two companies have already announced that they will jointly develop two electric models under the Volkswagen brand, specifically for the mid-size car market in China, with plans to launch in 2026. The two models will be based on Xpeng's G9 model platform, intelligent cockpit and advanced driver assistance system software, and will also use some of Volkswagen's components and first-chain resources.
Second, Volkswagen also hopes to share the growth dividend of Xpeng Motors by investing in Xpeng Motors. Xpeng Motors is a dark horse in China's electric vehicle market, and its development speed is very amazing. Xpeng's revenue in the third quarter of this year reached 85300 million yuan, an increase of 25% year-on-year and 68% month-on-month5%。Xpeng Motors has also surpassed $100 billion in market capitalization, making it the third-largest electric vehicle manufacturer in China, behind Tesla and BYD.
Volkswagen acquired Xpeng for approximately $4 per American depositary share**99% equity with a total price of about 70.5 billion US dollars. The current share price of Xpeng Motors has exceeded 70 Hong Kong dollars, indicating that Volkswagen's investment has returned a lot. If Xpeng can continue to maintain rapid growth, it means that Volkswagen's earnings will be even more considerable.
Second, what benefits can Xpeng get from Volkswagen?
First of all, Xpeng can get support from Volkswagen in terms of funding, branding, and **chain. In terms of capital, Xpeng Motors can use Volkswagen's investment to increase its own working capital, which can be used to expand production scale and sales channels.
Secondly, in terms of brand, Xpeng Motors can use Volkswagen's popularity to enhance its brand influence and attract more consumers.
Finally, Xpeng Motors can reduce its own procurement costs, optimize its own first-chain management, and improve its product quality and efficiency through cooperation with Volkswagen.
Summary: My opinion on this matter is that Xpeng Motors' official announcement of Volkswagen's completion of the stake is a thing that is beneficial to both parties. This is a win-win cooperation that will allow both parties to achieve better results in the electric vehicle competition in the Chinese market.