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XPENG and the Volkswagen Group have come collectively in a couple of huge methods now to collaborate and assist one another. It’s an fascinating partnership, and one which retains rising and evolving. The most recent step they’ve taken collectively is a plan to construct a a lot bigger super-fast charging community collectively than alone. The end result might be “one of many largest super-fast charging networks in China, granting mutual entry to respective proprietary, industry-leading super-fast charging networks.”
XPENG & Volkswagen Group — Opposites Entice
There are a few issues about this rising partnership that I feel are fascinating and noteworthy at this level.
For one, they’re vastly totally different corporations. XPENG is a younger tech-oriented firm created by tech folks that’s centered on the time period “good electrical autos,” not simply “electrical autos,” that’s attempting to scale up with a purpose to turn out to be worthwhile and survive long run. Volkswagen Group is likely one of the most legacy of legacy automakers, has expanded throughout the globe and fights for the title of largest automaker/auto group on this planet, however has struggled to innovate successfully has vehicles have more and more turn out to be “computer systems on wheels.” It has tried to be a pacesetter in EVs, however its tech shouldn’t be practically as superior as younger XPENG’s. On the similar time, as China is electrifying shortly, Volkswagen Group is doing its greatest to carry onto the market share it has there at a time when legacy automakers from the West appear destined to be squeezed out of the most important auto market on this planet. Can Volkswagen Group preserve a robust foothold, and even develop its share, by way of a detailed partnership with XPENG? Can XPENG discover extra clients and develop geographically, and possibly even lower auto manufacturing prices, by way of a detailed partnership with Volkswagen Group?
In some regards, it looks like a match made in heaven, a case the place opposites appeal to as a result of they complement one another. After all, opposites can even simply fall out with one another. We’ll have to attend and see the place this partnership leads.
Surviving China
The second factor — I assume touched on just a little above already — is that the fast-changing Chinese language auto market is a cutthroat market the place everyone seems to be struggling to scale up (or avoiding rather more cutting down) whereas chopping prices and innovating quickly. The speed of innovation within the Chinese language auto market is notably larger than in Europe and the US, and there appears to be a worth warfare simply across the nook of each web page of the calendar. A number of huge gamers within the EV market are doing fairly properly — BYD, Tesla, and Geely. And then you definately’ve bought the smartphone big Xiaomi flying in and instantly capturing up the ranks, and doubtlessly Foxconn on the verge of doing one thing related. To continue to grow and survive, we could also be getting into an period of huge partnerships, alliances, and mergers. Volkswagen and XPENG appear to have seen that they want one another, or at the very least that they’re extra aggressive teaming up than on their very own. You get the sense that is all constructing towards a a lot deeper marriage, maybe a merger/acquisition. We’ll have to attend to see.
Again to the brand new charging MOU (memorandum of understanding), “Over 20,000 charging piles operated by each events throughout 420 cities in China might be accessible to clients of each XPENG and Volkswagen Group China.” They are going to discover co-branding charging stations. Briefly, it is a means for the 2 frenemies to out-attract their rivals and supply a greater EV life to their automobile consumers. If they’ll’t beat Tesla or some others on their very own, maybe they’ll achieve this collectively.
The precedence is clearly China, however I’m wondering about their potential partnership in related methods in Europe ultimately. “This strategic collaboration marks the fourth milestone within the long-term strategic partnership between XPENG and Volkswagen Group. Each events plan to discover additional strategic collaboration alternatives, broadening know-how collaborations, and strengthening the win-win strategic partnership.” Which would be the fifth milestone of their rising relationship?
XPENG & Volkswagen Historical past
For extra historical past on this partnership, let’s have a look at their first huge strikes. A yr and a half in the past, Volkswagen invested $700 million into XPENG, and so they started “joint improvement of clever, absolutely related electrical autos (ICV) for the Chinese language market.” Then, on the finish of February 2024, “they introduced quick co-development of two new good vehicles,” and in April 2024, they introduced co-development of some new electrical automobile structure. A number of months in the past, it was reported that a whole lot of Volkswagen workers have been at XPENG headquarters, “studying in regards to the startup’s know-how.”
So, now, the partnership strikes on with super-fast charging in China.
XPENG’s Good EV Progress
I’m desperate to see the fruits of this collaboration in additional superior tech in Volkswagen vehicles. I think about that may include an entire new EV sequence, or maybe simply huge upgrades to current fashions, however we aren’t near that but. Updates rolled out a couple of days in the past by XPENG present us the place Volkswagen might be headed, although:
“XPENG, a number one Chinese language future mobility firm, has introduced the worldwide rollout of its newest over-the-air (OTA) software program replace, XOS 5.4, bringing superior clever driving, enhanced security options, and customized experiences to its customers worldwide,” XPENG writes.
“With the replace, the XPENG Assistant now helps voice management in a number of languages, together with English, French, German, Cantonese, and Thai. This expanded language help permits for intuitive interactions with navigation, automobile controls, and media, making the XPENG driving expertise much more accessible to drivers and passengers around the globe.”
“A standout function of XOS 5.4 is the ‘AI Guard’ system, which introduces superior security instruments for even larger peace of thoughts. Sentry Mode, as an illustration, displays and information suspicious exercise across the automobile when unoccupied, reminiscent of surprising movement or extended loitering close to the automobile. Notifications are despatched on to the person’s XPENG app, guaranteeing customers are all the time knowledgeable of potential dangers. The Driving Recorder function enhances security throughout journey by capturing important occasions in real-time, and storing key footage securely for simple entry later (Because of regulatory restrictions, this function is quickly unavailable in some areas).” Nicely, that sounds acquainted, doesn’t it?
“Good driving capabilities additionally embody Good Pace Restrict Recognition, which identifies street indicators like ‘No Entry’ and off-ramp signage to advertise safer, extra knowledgeable driving experiences.” That goes past what Tesla’s FSD appears to have the ability to deal with proper now.
“The replace additionally consists of the improved Personalised Working System 2.0, that includes enhancements reminiscent of multitasking split-screen performance and larger flexibility in customizing infotainment layouts with the XDock system.” That each one sounds fairly good.
When will Volkswagen get all of those sorts of issues in its EVs?
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