Volkswagen Group China plans to join with XPENG, a major Chinese electric vehicle (EV) manufacturer, to jointly build one of the largest super-fast charging networks for EVs in China. The move is expected to enhance Volkswagen's competitiveness in China's EV market and marks a promising direction for cooperation between Chinese and German carmakers as well as European carmakers in general, analysts said. The project will provide more than 20,000 self-operated charging piles, covering 420 cities and regions across China. Both companies will be enhancing the charging experience of EV drivers by expanding charging locations, the company said. The collaboration was formalized through a memorandum of understanding (MOU) for strategic collaboration. The charging network will integrate seamlessly with major automakers via mobile apps, according to the company. “Volkswagen partnered with XPENG, recognizing its extensive sales network and established charging infrastructure in China. Leveraging XPENG's resources allows Volkswagen to rapidly expand its charging network, minimizing time and costs,” Wu Shuocheng, a veteran automobile industry analyst, told the Global Times.
China's automobile market has matured rapidly in the past several years, remaining highly attractive for foreign automakers. Major Japanese and European automakers unveiled new partnerships with Chinese companies in November during the 22nd Guangzhou International Automobile Exhibition. On November 12, Dongfeng Nissan Passenger Vehicle Co announced a partnership with Huawei. The two companies are expected to collaborate on developing a smart car cockpit based on Huawei's HarmonyOS system. China has been the global front-runner in new-energy vehicle (NEV) production and sales for nine consecutive years, from 2015 to 2023 and in the first 11 months of 2024 China's carmakers sold more than 11.26 million NEVs, a 35.6% increase compared to the previous year, according to the China Association of Automobile Manufacturers (CAAM). China holds immense potential in vehicle consumption. The CAAM estimates that China's total vehicle sales are expected to reach 31.5 million units in 2024, including 13 million NEVs.
China's NEV sales accounted for almost 70% of the world's total between January and November, said Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA). The share stood at 52% in 2021, rising to 63% in 2022, 64% in 2023 and 69.6% in the first 11 months of 2024, reflecting a clear trend of rapid expansion, Cui said. He noted that China's NEV growth has outpaced the global average, the Global Times reports.
