Volkswagen opens presales of second Xpeng joint model in China

BEIJING, Sept 24 (Reuters) - Volkswagen VOWG.DE launched presales of its second model jointly developed with EV maker Xpeng 9868.HK in China on Thursday, expanding its electric vehicle offensive to catch up with Chinese rivals.

The new electric fastback sedan debuts as the German auto giant battles a deepening crisis in its largest market, driven by weaker sales and slimmer profit margins.

The model, ID. UNYX 09, is the latest offering in Volkswagen's "in China, for China" campaign, which aims to accelerate vehicle development and better compete with domestic carmakers like BYD 002594.SZ or Geely 0175.HK.

Volkswagen's partnership with Xpeng has been central to its China revamp strategy to fend off swift electrification, which led to the launch of its first Xpeng model, the ID. UNYX 08 SUV, earlier this year.

Despite that push, Volkswagen's deliveries to China fell 26% to 971,000 units in the first half of 2026, the company said in July, noting it was "unable to escape" the significant decline in the Chinese market. That was their lowest level in 16 years.

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The current contraction in the Chinese market was equivalent to the impact of the COVID-19 pandemic, Volkswagen's China chief said this week.

It has said the ID. UNYX 09 has been brought to production in just 24 months, about 30% faster, on its new China-based architecture.

The mid- to large-size EV coupe is equipped with batteries from CATL 300750.SZ, and Xpeng's VLA intelligent driving assistance system. It will be built at Volkswagen's Hefei plant, west of Shanghai, which also produces the ID. UNYX 08.

Priced from 199,900 yuan ($29,785) in presales, the new sedan will officially go on sale at the end of October.

In China, homegrown brands continue to erode the market share the German giant once held. Volkswagen plans to launch more than 20 battery-electric and plug-in hybrid models this year.

Volkswagen has partnered up with Xpeng since 2023 when it bought a 5% stake in the Chinese firm.

Expanding beyond its work with Volkswagen, Xpeng plans to offer its technology to other foreign automakers, Reuters exclusively reported this month.

($1 = 6.7115 Chinese yuan renminbi)