Global automakers, who for years have dominated the market along with their Chinese state-run partners, have been slow to pivot to the fast-growing market for EVs with competitive offerings.
"This major collaboration between Volkswagen and Xpeng is a milestone for our electrification strategy 'in China for China'," said Ralf Brandstatter, a VW board member on his social media account.
Their deeper pockets give established foreign automakers who are determined to fight for share in China, the ability to play a long game.
Kia (000270.KS) is to enter China's EV market with its first EV, the EV6 crossover, via imports in August.
"The German brands benefit from significant global scale," said He Lei, CEO of Chinese EV trading platform xChuxing.
Persons:
Aly, Yale Zhang, Ralf Brandstatter, We've, Mary Barra, Tu Le, Yang Honghai, Kia, Mercedes Benz, Volkswagen's Audi, Lei, It's, Bill Russo, Automobility, Zhang Yan, Brenda Goh, Kevin Krolicki
Organizations:
Audi, Volkswagen, Auto, REUTERS, General Motors, Toyota, China Association of Automobile Manufacturers, Global, BMW, Mitsubishi, Automotive Foresight, GM, Reuters Graphics Volkswagen, BYD, China's Xpeng, HK, SAIC, VW, Buick, Chevrolet, Cadillac, CHINA EV INC, Tesla, China EV Inc, Volkswagen's, EV, Mitsubishi Motors, Nissan, Ford, Renault, Thomson
Locations:
Auto Shanghai, Shanghai, China, SHANGHAI, CHINA, Kia China, KS