Volkswagen and XPENG Team Up for a Superfast Charging Network in China
As the electric vehicle (EV) market accelerates into a new era, collaboration between industry giants becomes paramount. At the onset of 2025, Volkswagen, the renowned German automobile manufacturer, and XPENG, a prominent Chinese new energy vehicle (NEV) maker, announced a strategic partnership aimed at revolutionizing charging infrastructure across China. This ambitious collaboration highlights both companies’ commitment to enhancing electric mobility and supporting the transition to sustainable transportation.
A Vision for a Superfast Charging Network
The joint venture between Volkswagen and XPENG is focused on constructing a superfast charging network that promises to feature over 20,000 charging piles throughout 420 cities in China. This extensive installation will significantly improve access to charging solutions for EV users, thus promoting greater acceptance of electric mobility. Olaf Korzinovski, the executive vice president of Volkswagen Group China, underscored the importance of this initiative, stating that it reflects their dedication to providing high-quality EV products equipped with cutting-edge technology.
The network is designed to optimize the charging experience, ensuring that electric mobility seamlessly integrates into everyday life, whether in bustling urban centers or in more remote areas. This initiative is a testament to the companies’ determination to foster the growth of electric mobility in China while ensuring that NEV customers receive convenient service experiences.
A Year of Transformation
2024 was a landmark year for Volkswagen in China, marking its 40th anniversary in the nation. According to Ralf Brandstaetter, chairman and CEO of Volkswagen Group China, the year encapsulated the essence of transformation. The company made significant progress in executing its electrification strategy, and their innovation hub in Hefei became fully operational, hosting 3,000 local engineers dedicated to developing the next generation of intelligent connected vehicles (ICVs).
Noteworthy developments include the China Electronic Architecture (CEA), a joint project between the Volkswagen China Technology Company, the software unit CARIAD, and XPENG. This project aims to create a modern and cost-efficient electrical architecture set to debut in vehicles as early as 2026. Such innovations exemplify Volkswagen’s commitment to adapting its strategies to cater to the specific needs of the Chinese market.
Strengthening Local Partnerships
Volkswagen’s strategic approach also includes strengthening partnerships with key local players such as China FAW Group and Shanghai Automotive Industry Corporation (SAIC). By extending their joint venture with SAIC, the companies are planning to introduce 18 new models by 2030. The collaboration has already born fruit, as Volkswagen Anhui recently launched its first product, the ID. UNYX, signifying an important step in expanding their electric vehicle portfolio in China.
Furthermore, as part of its push towards electrification, Volkswagen has introduced models like the ID. CODE and AUDI E that showcase future design and technology concepts. A new AUDI brand aimed at young, tech-savvy consumers is also on the horizon.
Market Performance and Future Outlook
Volkswagen’s efforts in the internal combustion engine (ICE) vehicle segment have yielded impressive results, achieving over 21 percent market share in 2024—the highest since 2005. The company delivered more than 2.9 million vehicles in the Chinese market last year and surpassed 9 million in global deliveries. Enforcing their commitment to the NEV sector, Volkswagen recorded over 200,000 NEVs sold in China in 2024, with sales of its ID. models rising by 17 percent year on year.
These achievements are not mere milestones; they represent a robust strategic alignment with the burgeoning electric vehicle market in China, which is experiencing unprecedented growth. Reports indicate that both production and sales of NEVs exceeded 12 million units in 2024, solidifying China’s position as a global leader in the EV space for a decade.
Unveiling New Models and Technologies
Looking ahead to 2025, Volkswagen has ambitious plans for model launches and technological advancements. The first series model of the new AUDI brand is set to be unveiled at the Shanghai Autoshow, while prototypes of Volkswagen models built on the Compact Main Platform, equipped with the new China E-Architecture, will also be showcased.
Volkswagen’s commitment to its “In China, For China” strategy reflects a proactive approach to meet local demands and preferences. Brandstaetter expressed confidence in the group’s ability to navigate the evolving market while leveraging their deep roots in China. As both Volkswagen and XPENG work together to build a cutting-edge charging network, they are not only enhancing their product offerings but also contributing to the broader mission of greening the automotive industry.
Conclusion
The strategic partnership between Volkswagen and XPENG signals a transformative shift in the electric mobility landscape in China. By focusing on the development of robust and accessible charging infrastructure, both companies are poised to redefine the electric vehicle experience for consumers across the nation. With the foundation set for innovation, technological advancements, and accessible solutions, the future of electric transportation in China looks promising and filled with potential for sustainable growth and development.