Xpeng’s CEO stated that he is looking forward to collaborating with Volkswagen to bring the best technology and products to the world. The CEO of Volkswagen China expressed that both parties share a common vision for the future of mobility.

Xpeng’s Chairman and CEO, He Xiaopeng, shared a photo of himself with the CEO of Volkswagen China, Ralf Brandstätter, on Weibo late last night, mentioning that the photo had been taken some time ago but had never been made public before.

Mr. He expressed his gratitude for the trust of Mr. Brandstätter and the Volkswagen team, and he is looking forward to both sides working together to bring the best technology, the best products, and the best brands to the world.

Mr. Brandstätter also posted a lengthy Weibo post almost at the same time, sharing the background of these two deals involving the German carmaker in China.

The penetration rate of new energy vehicles (NEVs) in the Chinese market has already exceeded 30 percent, and it is expected to reach 50 percent by 2025, said Brandstätter, adding that Volkswagen wants to quickly take advantage of the market’s huge potential for growth and meet the expectations of Chinese customers for high-quality products. The strategic partnership between Volkswagen and Xpeng, as well as the cooperation between Audi and SAIC, represents another milestone in the company’s “in China for China” strategy.

The Volkswagen brand will develop two new electric models for the mid-size market, while the Audi brand will open up a new premium segment with new electric models, he said.

Mr. Brandstätter emphasized that, crucially, the new models will not replace the existing models of either brand.

His Weibo post mentioned that Volkswagen’s deep involvement in China’s local tech ecosystem will help the company to meet the differentiated needs of Chinese customers more quickly.

Volkswagen is not only strengthening its R&D capabilities through Cariad and Volkswagen (China) Technology Co Ltd (VCTC) but has also established partnerships with local tech firms, including Horizon Robotics, Thunder Software Tech, and Gotion High-tech.

As background, in October last year, Volkswagen announced that its software subsidiary Cariad would establish a joint venture with Chinese self-driving chip maker Horizon Robotics to accelerate the development of smart driving technology locally.

Mr. Brandstätter wrote in yesterday’s Weibo post that a new partnership with Xpeng and SAIC to jointly develop the next generation of smart, internet-connected cars in China is a natural fit.

Mr. Brandstätter said that over the past few months, he has had exchanges with Mr. He of Xpeng and his team, which were based on high mutual trust.

His Weibo post in Chinese reads: “We are both convinced that the Volkswagen Group and Xpeng share the same values and vision for the future of mobility.”

“Chairman He Xiaopeng told me that he is very much looking forward to working with the Volkswagen Group, and that the group is one of the international carmakers with the deepest understanding of the Chinese market and culture. This comment makes me and our team very proud,” he added.

Mr. Brandstätter ended his Weibo post with the same group photo shared by Mr. He.