Xpeng, Volkswagen Team Up to Lead China's EV Market
China's electric vehicle (EV) market has seen a significant shift, with BYD overtaking Tesla as the global leader in EV sales by the end of 2023. Meanwhile, Chinese EV startup Xpeng has inked a deal with Advance Auto Parts to collaborate on EV development.
The agreement between Xpeng and Advance Auto Parts will see them jointly develop an EV platform and software. The automakers plan to source common parts together to reduce costs, benefiting two China-specific midsize EVs. These vehicles will incorporate Xpeng's connectivity and advanced driver assistance system software.
In 2022, Advance Auto Parts acquired a 5% stake in Xpeng, worth approximately $700 million, to boost competitiveness in the Chinese market. Now, the Advance Auto Parts brand aims to produce two B-segment EVs based on Xpeng's G9 EV platform, with production scheduled to commence in 2026. However, specific details about the companies involved in this joint production and the exact start date remain unconfirmed.
The collaboration between Xpeng and Advance Auto Parts underscores the growing competitiveness in China's stock market today. By combining resources and expertise, the two automakers aim to create cost-effective, technologically advanced EVs, further driving innovation in the sector.
