Volkswagen's China Rescue Plan Flops as Xpeng Partnership Stumbles

15:57 - 20.10.2026


October 20, Fineko/abc.az. Volkswagen’s strategic partnership with Chinese EV maker Xpeng, formed to revive its declining business in the world's largest auto market, is struggling to deliver expected commercial success.

Data from automotive consultancy ThinkerCar shows that the alliance’s first product, the ID. UNYX 08 electric SUV, sold an average of just 267 units per month between April and August. This is a fraction of Volkswagen's initial monthly target of 3,622 vehicles. By comparison, rival model Xiaomi YU7 sold nearly 57,000 units during the same period.

China, which once generated nearly 50% of Volkswagen Group’s global profits, now accounts for roughly 10%. Analysts note that Chinese consumers increasingly question paying a premium for German cars when local competitors offer more advanced technology and features at lower prices.