The partnership between Volkswagen and the Chinese electric car manufacturer Xpeng fails to achieve its goal of returning the German company to the leaders of the Chinese automotive market. The first joint model - the electric SUV ID. UNYX 08 - sold an average of 267 cars per month between April and August, against an initial target of 3,622 sales per month in 2026.
Around 1,300 cars were sold during the period. For comparison, Xiaomi sold almost 57,000 units of the YU7 model, and Zeekr - over 21,000 units of the 7X. The data is from the automotive consultancy ThinkerCar and is cited by the ag. Reuters.
Technology and price don't convince buyers
The ID. UNYX 08 has been launched at a price of about $34,260. At similar prices, Chinese competitors offer more technological features - the Xiaomi YU7 has a more advanced sensor system, and the Zeekr 7X supports fast charging.
That's according to Pedro Pacheco, research vice president at Gartner. According to Bernstein auto analyst Steven Reitman, the problem is also the time it takes Volkswagen to introduce new models. When the company showed previews of Xpeng-connected cars in April 2024, a similar design was already widely available in the Chinese market.
Limited dealer network
Sales of the ID. UNYX 08 are mainly organized through a new network of Volkswagen Anhui - a company focused on electric vehicles. It had 166 outlets, while Volkswagen has more than 3,000 dealerships through its joint ventures with FAW and SAIC.
Volkswagen says that sales of Anhui models, including the earlier UNYX 06 and UNYX 07, are increasing. The company says it is working with FAW-Volkswagen at selected dealerships to reach more customers. The German manufacturer adds that the partnership with Xpeng has led to a new electric architecture developed in 18 months, as well as faster creation of models for the Chinese market. Xpeng declined to comment.
Expectations are reduced, but goals remain high
Volkswagen originally expected to sell 32,600 units of the ID. UNYX 08 by the end of 2026. At the beginning of the year, the forecast was reduced by more than 60% to 12,300 cars. In recent weeks, the model has been advertised with a 17% discount on its starting price.
The next joint model with Xpeng - the ID. UNYX 09 sedan - is due to reach showrooms in October. Internal planning documents foresee average monthly sales of nearly 4,900 cars and an annual volume of more than 90,000 cars by 2034.
The question is whether Volkswagen will be able to turn access to Chinese technology into real demand. China used to account for nearly 50% of the group's profits, but its share is now around 10%. In the first eight months of 2026, Volkswagen Group's market share in China fell to 10%, with one in five cars sold in 2019.
Stephan Bratzel of the Center for Automotive Management describes Volkswagen as "too slow to build the competencies it needs today." According to Bill Russo of Automobility, the company still has room to recover, but the risk is that the market will develop faster than Volkswagen can transform itself.