German automaker Volkswagen Group and Chinese electric vehicle maker XPeng have jointly launched their first co-developed electric vehicle in China, marking a major step in strengthening their partnership in the world’s largest EV market.
The new model, Volkswagen ID. UNYX 08, rolled off the production line on Friday at the Volkswagen Anhui manufacturing facility in Hefei.
EV developed in China for Chinese market
According to Oliver Blume, the vehicle was designed specifically for Chinese consumers by combining German engineering with advanced local technology.
“The car was developed in China for China, with German engineering and local cutting-edge technology,” Blume said while highlighting the importance of the Chinese market in Volkswagen’s global strategy.
The development process for the new EV was completed in less than two years, demonstrating the efficiency of the partnership between the two companies.
Strategic partnership between Volkswagen and XPeng
Ralf Brandstätter said the launch forms part of Volkswagen’s broader electric vehicle expansion strategy in China.
“We are launching the Group’s largest electric vehicle offensive in China, which underscores the implementation strength of our partnership with XPeng,” he said.
The collaboration stems from a long-term strategic partnership signed by Volkswagen and XPeng in 2023, aimed at accelerating EV development and strengthening competitiveness in China’s rapidly growing electric vehicle market.
XPeng also expressed optimism about the cooperation, stating that the company looks forward to further deepening its partnership with Volkswagen to achieve mutual growth.
Second model expected later this year
Volkswagen confirmed that the ID. UNYX 08 is the first product resulting from the partnership, with a second jointly developed electric vehicle model expected to be introduced later in 2026.
The production launch in Hefei reflects Volkswagen’s continued investment in China’s automotive sector.
Anhui emerging as China’s EV hub
Anhui Province has rapidly emerged as a major automotive manufacturing hub. In 2025, the province ranked first in China for total automobile and new-energy vehicle production.
Vehicle exports from Anhui also exceeded one million units for the first time last year, making it the top vehicle-exporting region in the country.
Volkswagen has invested more than €3.5 billion in Hefei so far, where the company operates its largest research and development center outside Germany. The facility currently employs around 3,000 research and development specialists working on next-generation automotive technologies.