To boost sales in the world’s largest EV market and one of Volkswagen’s most important regions, the company is launching a new digital EV platform with China’s XPeng. VW says the EV platform will slash costs as it looks to recapture market share in China.
VW to slash costs in China with new EV platform
After BYD ended its 15-year run as China’s selling car brand last year, Volkswagen is looking to regain relevance.
The company announced that the jointly developed E/E Architecture with XPeng will be used in VW brand EVs starting in 2026.
“The collaboration will allow our Smart EV products to be both technologically competitive and cost competitive,” Mr. Xiaopeng He, CEO of XPeng, said.
XPeng’s E/E Architecture is the brain of its full-stack software and hardware tech. The platform enables Advanced Driver Assistance System (ADAS) features and continuous upgrades over-the-air (OTA).
Under the new agreement, the partners will develop and integrate XPeng’s latest E/E Architecture into VW’s China Main Platform (CMP).
“With our ‘In China, for China’ strategy, we are strengthening the innovative power of the Volkswagen Group in China,” Ralf Brandstätter, VW’s China boss, explained.
Brandstätter said the two will combine strengths, highlighting that “This increases efficiency, optimizes cost structures and accelerates the speed of development.” VW’s China head added lower costs and rapid development are “crucial for our competitiveness in China’s dynamic market environment.”
VW believes it can recapture market share in China with an advanced, low-cost EV platform rolling out. Last July, the company invested $700 million into XPeng for a nearly 5% stake.
Electrek’s Take
As Chinese automakers like BYD release low-cost EVs, like the new Seagull, starting at $9,700 (69,800 yuan), legacy automakers are scrambling to catch up.
Even Ford’s CEO Jim Farley called BYD’s Seagull “pretty damn good.” BYD sees joint venture brands’ market share falling from 40% to 10% over the next three to five years as lower-cost, more advanced EVs roll out.
Volkswagen’s CFO Arno Antilitz warned the company could lose more market share in China until the new EVs begin rolling out.
Meanwhile, VW Group EV sales in China climbed 91% in the first quarter as the automaker aims to recapture market share.
However, by 2026, the “advanced features” may not seem as special as many Chinese automakers already offer them.
What do you guys think? Can Volkswagen make a comeback in China? Let us know your thoughts in the comments below.
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Tesla (TSLA) has introduced a new direct discount for the Model Y in China as the latest of a series of incentives to boost demand during this critical end-of-quarter push.
The automaker regularly offers discounts at the end of every quarter, but the incentives to boost demand have been the most wide-ranging ever this quarter.
Over the last month, we have been documenting the many sale incentives and discounts that Tesla has put in place to ensure it creates the demand for a record quarter.
Tesla aims to deliver a record number of more than 515,000 vehicles in Q4 in order for its sales not to be down for the whole year. That’s ~30,000 more vehicles than Tesla’s last record quarter, which was Q4 2023.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates. That has been the main incentive in China, Tesla’s biggest market, until now.
Tesla’s New Discount in China
Today, Tesla announced that it is offering a ¥10,000, the equivalent of $1,380 USD, discount on the final payment for new Model Y vehicles:
The new discount can be combined with Tesla’s subsidized 0% interest financing, which has been Tesla’s main incentive in China all year.
Electrek’s Take
Based on insurance data, Tesla is tracking ahead of last year’s deliveries in China, but it is going to need to beat its last record by a significant margin to make sure not to be down for the whole year.
Model Y is Tesla’s most popular vehicle, but Tesla is also going against the expectation of the design refresh coming early next year, which can negatively affect demand.
This discount is likely to combat that and maintain Tesla’s current good momentum in China.
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We now have more details on the massive recall, which just keeps growing. Hyundai and now Kia are recalling more than 208,000 electric vehicles in Canada and the US to fix a problem with the loss of driving power, which can increase the risk of a crash.
For the second time this year, the automakers are recalling huge swathes of EVs and other “electrified” vehicles in North America, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.
In the US, Hyundai is recalling 145,235 EVs, including the 2022 through 2024 Ioniq 5, the 2023 through 2025 Ioniq 6, GV60 and GV70, and the 2023 and 2024 G80. In Canada, Hyundai is recalling 34,529 vehicles that were produced between March and November of this year, according to Automotive News Canada.
As for Kia, the recall includes close to 63,000 Kia EV 6 vehicles from 2022 through 2024 in the US, but the company has yet to offer details on its Canada recall.
It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.
Back in March, Hyundai, Kia, and Genesis issued a similar recall for 147,110 electric vehicles – that recall centered, again, around damaged integrated charging control units failing to charge the battery.
The South Korea automaker has said that all owners of affected vehicles will be notified by letter mail on the next steps to take. This will involve bringing your vehicle to one of the company’s dealers to inspect and replace the charging unit and its fuse if necessary, along with performing a software update for the charging units.
Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US or Canada, Hyundai reported.
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A group of Tesla vehicles spotted under covers at the automaker’s test track at the Fremont factory is raising some questions.
Tesla has a very small test track on the ground of its first factory, Tesla Fremont, in California.
Now and again, people fly drones over the factory and catch glimpses of new cars being tested. Youtuber ‘Met God in Wilderness’ is one of those drone pilots who regularly fly over the factory and while he didn’t catch vehicle being tested, he did catch some curious vehicles under covers next to the track:
The vehicles are all covered, and therefore, it’s hard to tell exactly what they are, but the different shapes are intriguing and raise some questions.
It looks like three, maybe four, different kinds of vehicles:
We know that Tesla is working on three new specific vehicles: a Model Y design refresh, and two new cheaper models based on Model 3 and Model Y.
All three vehicles are expected to be unveiled early next year.
Electrek’s Take
At the risk of stating the obvious, getting much information from vehicles hidden under cover can be hard. It’s even possible that some of those have shape camouflage, which is sometimes used by automakers – although I don’t remember Tesla ever using that.
So here are my best guesses. Take them for what they are: guesses.
The most interesting ones to me are the first two on the left in the picture above. The last vehicle on the left looks like it could be a smaller Model 3.: