Volkswagen Group expands ties in China, investing millions in XPeng Motors to co-develop EVs
A week after confirming its subsidiary Audi will be co-developing EVs with SAIC Motor, Volkswagen Group is investing hundreds of millions of dollars in China’s XPeng Motors. Together, the automakers plan to jointly develop Volkswagen branded EVs for the Chinese market.
The collaborations between legacy European automakers and young Chinese EV manufacturers continue to grow, especially this month. First, we covered rumors that Audi had been kicking the tires in China, so to speak, in search of a new partner to provide a next-generation EV platform.
Two days later, anonymous sources were confirming Audi was in “advanced talks” SAIC Motor – a Chinese state-owned manufacturer alongside word that a public announcement was coming. Last week, SAIC Motor came forward and confirmed the partnership which was later acknowledged by Audi in the following statement shared with Electrek:
SAIC and Audi share the common understanding to accelerate the electrification of the model portfolio through joint projects. All stakeholders agree that the Chinese auto market is in the midst of the biggest transformation in its history, therefore we will jointly work on a strategic approach that guarantees our future success.
A big reason for Audi’s expedited search overseas for a new dance partner is lagging sales due to development delays, particularly on the software side. Parent Volkswagen Group and its incoming new CEO is supposed to provide Audi with its next EV platform, but has its own list of development headaches in which it might not be able to deliver architecture until 2029.
As a result, Volkswagen Group looks to supplement its current MEB platform in China with a new partner – XPeng Motors.
Volkswagen invests $700M for 5% stake in XPeng
According to Volkswagen Group, it is bolstering its position on electrification in China on the wings of collaborations between Audi and SAIC as well as today’s news of a “long-term cooperation” with XPeng Motors via a newly formed entity called Volkswagen China Technology Company (VCTC). The cooperations join VW’s existing joint venture with FAW founded over 30 years ago.
In terms of its new relationship with XPeng specifically, Volkswagen is investing $700 million via capital increase with the intention to eventually hold approximately 4.99% of shares in the Chinese EV automaker.
The first step of the collaboration includes the joint development of two VW branded BEVs for the mid-size segment in China, sitting atop XPeng’s G9 platform equipped with some of the industry’s best ADAS software. Volkswagen Group board member for China Ralf Brandstätter spoke to the German automaker’s bolstered strategy in China:
Local partnerships are an important building block in the Volkswagen Group’s ‘in China for China’ strategy. We are now accelerating the expansion of our local electric portfolio and at the same time preparing for the next innovation step. With XPeng, we now have another strong partner that is one of the leading manufacturers in China in key technology areas.In a competitive and dynamic market environment, we are leveraging the strengths of Volkswagen and our partners to create synergies to bring additional products to market faster. In doing so, we focus on the specific needs of our customers in China. At the same time, we want to significantly optimize development and procurement costs.
Volkswagen says its Chinese-specific EVs designed alongside XPeng Motors will roll out in 2026. The automaker also says that its cooperation with XPeng as well as SAIC Motor include plans for “future e-platforms,” but are subject to further negotiations.
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The State of California is moving to ban the sale of Tesla cars amid claims that the company and its CEO, Elon Musk, have misled buyers about the self-driving capabilities of their cars. We’ve also got market-leading news out of Vietnam and a pricey, pricey lesson for one VW ID.Buzz buyer on today’s lesson-learning episode of Quick Charge!
We also ask what this might mean for the recent Uber/Lucid autonomous taxi tie-up and go through a full rundown of the fastest depreciating EVs on the market (and yes, there are four Tesla models in the top 10 … because the Cybertruck was too new to qualify).
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Sunrun is putting tens of thousands of home batteries to work in Puerto Rico as the island’s electric grid faces a summer of high temperatures and energy shortfalls.
The company says it’s now dispatching energy from over 37,000 residential batteries to help grid operator LUMA keep the lights on. That stored power is being used to prevent rolling blackouts when demand spikes and centralized power plants can’t keep up.
Sunrun’s emergency power contribution has grown more than tenfold since last summer. LUMA expects more than 75 energy shortfall events between now and October, with each dispatch sending electricity to the grid for four consecutive hours. During several recent evenings, Sunrun and other virtual power plant (VPP) operators provided enough energy to offset a 50-megawatt generation gap, LUMA said.
Sunrun CEO Mary Powell said Puerto Rico’s aging infrastructure and intense weather patterns make home battery support increasingly critical:
It’s going to be a very difficult summer, which is why Sunrun has ramped up our dispatch capabilities, using tens of thousands of home batteries to support the grid and people of Puerto Rico.
She added that distributed power plants like Sunrun’s serve the same role as natural gas peaker plants – offering fast, reliable power during high-demand moments – but with clean energy.
Sunrun customers enrolled in the VPP will get paid too. Each participating battery earns about $200 minimum for the season, and customers who allow more of their stored energy to go to the grid earn even more. Sunrun also earns revenue for operating the VPP.
Read more: The US’s largest virtual power plant now runs on 75,000 home batteries
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Volkswagen is advertising ID.4 leases starting at just $99 a month. It’s hard to find any car lease these days for under $100 a month, but for $45,000 electric SUV, it’s almost unheard of.
Volkswagen offers ID.4 leases as low as $99 a month
The Volkswagen ID.4 was the third top-selling EV in the US in January after the 2025 model year went back on sale.
Volkswagen’s electric SUV starts at $45,095 with an EPA-estimated driving range of 291 miles. It’s available in five different trims: Pro, AWD Pro, Pro S, AWD Pro S, and AWD Pro S Plus.
The base 2025 VW ID.4 Pro RWD is equipped with 282 hp from a single rear electric motor. Inside, it features a 12.9″ infotainment system with Android Auto and Apple CarPlay support, heated front seats, dual-zone climate control, and Volkswagen’s new ID.Cockpit digital instrument display.
Upgrading to the AWD version will gain a tow hitch and an additional 53 hp, for a combined maximum of 335 hp. The added power comes at the cost of some range, with an EPA-estimated range of 263 miles.
Volkswagen was already offering 2025 ID.4 leases as low as $129 a month, but some dealers are listing it for even less this month.
A California dealership, Volkswagen of Garden Grove, has the 2025 ID.4 Pro RWD listed for lease at just $99 per month. The offer is for 24 months with $2,995 down. According to the dealer, the offer includes a $5,000 cash back bonus, good on a new ID.4 purchase or lease.
We thought the 2025 Hyundai IONIQ 5 was a good deal with leases starting at just $179 per month, but for $99, now that’s a steal.
Looking for deals on the Volkswagen ID.4 near you? You can use our link to find and view offers on the 2025 Volkswagen ID.4 in your area (via a trusted affiliate link)
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