Volkswagen is integrating sales channels across its Chinese joint ventures, with select dealerships from FAW-Volkswagen set to begin selling electric vehicles developed by Volkswagen Anhui, according to a company announcement.
The two joint ventures signed a strategic memorandum of understanding on Thursday to cooperate on dealer networks, introducing a “store-in-store” format that will allow FAW-Volkswagen outlets to display and sell Volkswagen Anhui models.
The first vehicle under this arrangement is the ID. UNYX 08, a mid-to-large electric sport utility vehicle co-developed with Xpeng. The model began pre-sales in late March and is expected to launch in the first half of the year, with a starting price of 239,900 yuan ($34,720).
The initial rollout will cover around 30 cities where Volkswagen Anhui has limited presence. Participating FAW-Volkswagen dealers will establish dedicated teams to support sales operations, according to Volkswagen Anhui.
Volkswagen Anhui currently operates about 140 sales outlets and aims to expand to 200 by year-end, while FAW-Volkswagen has a network of nearly 1,000 dealers across China.
Volkswagen’s joint ventures in China have historically operated separate sales systems, including independent branding, inventory management, and retail incentives. The new arrangement reflects increased coordination within the group’s China operations as it accelerates its electric vehicle strategy.
The move follows recent developments around the ID. UNYX 08 program. In March, Volkswagen Anhui began series production of the model in Hefei, marking the first production vehicle developed in collaboration with Xpeng, in which Volkswagen holds a minority stake. The partnership was formalized in 2023, when Volkswagen acquired an approximately 5% stake in Xpeng.
Volkswagen has also opened pre-sales in China for the ID. UNYX 08, with pricing starting at around €30,000. The model, first unveiled in November 2025, represents the initial production outcome of the collaboration between the two companies.
The ID. UNYX 08 is equipped with two Turing smart driving chips supplied by Xpeng and incorporates the company’s VLA 2.0 driver-assistance system. Development of the vehicle took about 24 months from the signing of the joint technology agreement to production.
In parallel, Volkswagen Group has expanded its electrification strategy in China through other joint ventures. Last month, SAIC-Volkswagen began pre-sales of the ID. ERA 9X sport utility vehicle, marking the group’s entry into extended-range electric vehicle (EREV) technology, a segment it had previously been cautious about.
Volkswagen Anhui, established in 2017 with Anhui Jianghuai Automobile Group, is Volkswagen’s first joint venture in China focused exclusively on new energy vehicles.