Volkswagen has been a major player in the Chinese automotive market for decades. In 2019, it was the top-selling brand in the country, with a market share of 20%. However, the company has been losing out to local competitors in recent years, and its market share fell to 15% last year.
The German vehicle manufacturer is looking to increase its stake in the EV industry, following fierce competition from top contenders like Tesla. According to recent reports, Volkswagen announced that it would invest $700 million in Xpeng Motors, a Chinese EV company.
Volkswagen said their position in China will be strengthened by investing in electric vehicles (EVs), digitalization, and autonomous driving.
The investment by Volkswagen in Xpeng is a sign of the growing Chinese EV market. The Chinese market is one of the largest EV markets in the world, and it is expected to continue to grow in the coming years. Volkswagen’s investment in Xpeng is a way for the company to gain a strong foothold.
Will the investment by Volkswagen in Xpeng be enough to help the company become a leader in the global EV market? Will Volkswagen and Xpeng develop new EVs that can compete Tesla and other rivals? Stay tuned.