Chinese electric vehicle (EV) manufacturer Xpeng is strategically expanding its collaborative efforts within the automotive industry, with plans to co-develop models with German automotive giant Volkswagen. Brian Gu, Xpeng’s vice president, emphasized the company’s commitment to sharing its autonomous driving and EV technologies with other automakers as a long-term trend, aiming to create a new revenue stream.
In an interview with the South China Morning Post on May 17, Gu stated, “We see more collaborations as the long-term trend, because it’s hard to imagine traditional car manufacturers developing smart driving technologies quickly by relying on their own capabilities.”
Xpeng recently unveiled its G6 SUV and X9 MPV in Hong Kong, with the first right-hand-drive versions of the G6 expected to be delivered in the third quarter. Gu highlighted the importance of smart driving technology in the future of EVs, noting that recent partnerships have allowed Xpeng to license its technology and generate significant economic returns.
The partnership between Xpeng and Volkswagen, announced on July 26, 2023, involves an investment of approximately $700 million by Volkswagen to acquire a 4.99 percent stake in Xpeng. The two companies plan to co-develop two Volkswagen-branded EV models tailored for China’s mid-size vehicle market, leveraging Xpeng’s G9 platform and Volkswagen’s connectivity and ADAS (Advanced Driver Assistance System) software.
Additionally, Xpeng announced on April 17 a framework agreement with Volkswagen for technical cooperation in Electrical/Electronic architecture (E/E architecture). This collaboration will see the integration of Xpeng’s latest generation of E/E architecture into Volkswagen’s China Main Platform (CMP).
Gu emphasized that owning leading technologies opens up numerous monetization opportunities, highlighting Xpeng’s strategy in a rapidly evolving industry landscape where Chinese EV startups are seen as having a technological edge in electrification.
