On February 5, Volkswagen Group China announced that a new Volkswagen brand model developed in cooperation with Xpeng will start production in Hefei in 2026.
Aerial view of Volkswagen's MEB plant in Anhui.
The reporter learned that Volkswagen and Xpeng reached an agreement in mid-2023 to jointly develop two Volkswagen brand electric models for the Chinese mid-size car market. As part of this partnership, the Volkswagen Group invested $700 million in Xpeng Motors and acquired 499% equity.
Previously, Volkswagen has announced cooperation with Xpeng in the field of new model research and development, which will be specifically responsible for Volkswagen (China) Technology Co., Ltd. (VCTC) based in Hefei. This time, Volkswagen has made it clear that the production of related models will also be placed in Hefei, further strengthening Volkswagen's R&D and production layout in Hefei. Anhui and Hefei have become more prominent in the Volkswagen Group's global strategy.
Up to now, Volkswagen has established an efficient intelligent networked vehicle industry cluster in Hefei, including Volkswagen (China) Technology VCTC, Volkswagen Anhui (VWA) plant and Volkswagen (Anhui) Parts VWAC. As a result, Hefei is fast becoming an important engine for the Volkswagen Group's innovation and development in China, as well as a gathering place for the Group's global key technical cooperation.
Volkswagen Anhui CEO Ge Wandi said that Volkswagen has established a complete automotive industry value chain in Hefei so far, covering R&D, business network, production, digital sales and after-sales service. In the future, the Group will further enhance its production capacity in Hefei and turn the Hefei Industrial Exhibition into a strong base for the development and production of smart electric vehicles for the Chinese market. "We are confident that we will be able to successfully deliver the vehicle in two years at 'Anhui speed'. ”
Hefei Tong client-Hebao full ** reporter Li Runyuan.