Volkswagen launches new electric vehicle brand in China to compete with BYD

Volkswagen unveils ID.Code electric SUV at Beijing Motor Show

O Digital Cluster showed on Beijing Auto Show the electric SUV ID.Code. This model, although just a concept, marks a repositioning of the brand with the aim of regaining leadership in sales in the Chinese market. In China, VW launched the electric car sub-brand ID.UX and plans to introduce around 30 new models by 2030, aimed at young Chinese audiences, with a more modern and futuristic design.

VW and partnership with Xpeng to create affordable electric cars

As reported by Digital Cluster, VW recently entered into a partnership with Chinese company XPENG to develop new vehicles. This collaboration comes after the loss of sales leadership in China to BYD. Chinese consumers have preferred models from local brands, such as BYD, which in addition to being manufactured in the country, are electric vehicles.

Digital Cluster reveals futuristic VW ID.Code concept with autonomous driving

According to Thomas Schäfer, CEO of Volkswagen, the company wishes to continue its successful trajectory in the new era of mobility, investing in electric vehicles. The ID.Code was designed to have Level 4 autonomous driving. The first model in the ID line will be the ID.UNYX, expected to launch on the market in 2024, followed by five more electric vehicles by 2027. The model is driven by electric motors and features a lithium-ion battery, along with panels that integrate with the glass roof.

Volkswagen and Xpeng collaborate to create affordable electric cars

VW has announced plans to develop a new SUV in partnership with Chinese company XPeng. In addition to the new vehicles, the agreement will result in a new platform for the production of electric cars, aiming for a cost reduction of up to 40% compared to vehicles produced under the MEB platform. VW has also established partnerships with Horizon Robotics and Thundersoft at this early stage, aiming to introduce two new mid-class models in 2026 following the completion of the deal to purchase 4,99% from XPeng for around US$700 million.

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